Continuing with our series of articles from Slimstock Academy Canada, here is Article 02 related to the first axis of the Maturity Table: Customer Focused Business Strategy.
The definitions of what sets us apart from the competition are critical. Are we the best, the most economical or the most innovative? Being able to find the identity of the company through the Client-Centric Business Strategy is the base for developing the assortment strategy. Once we are clear about our assortment, we can start to develop a focused Inventory Optimization strategy.
A strategic focus
How do you want to differentiate yourself from the competition and what must be done to achieve it?
At the managerial level reflections are developed about the objectives that are required to achieve success. The development and fulfilment of these objectives are directly related to the making of Strategic, Competitive and Functional Corporate decisions. All are part of the definition of a Business Strategy and must be directly related to each other.
3 Client-centred Value Disciplines
To encompass everything means the process of defining a strategy that adds value to customers. In Slimstock we work under the 3 Disciplines of Value (see more information here >>) of Michael Treacy and Fred Wiersema, who help us choose the focus to follow concerning a defined Business Strategy.
The 3 Disciplines of Value are:
It means offering innovative and top-of-the-line products that optimize the relationship between products and services with the customer. This obsoletes the offer of the competition.
Close Relationship with the Client:
It means making a precise and focused market segmentation. This discipline offers answers to the specific needs of potential clients.
It means giving customers maximum comfort and reliability possible. This means delivering products in established terms, with available variety and at competitive prices.
We know that many times the strategies are not totalitarian and have many nuances. For this reason, it is proposed to work with the disciplines by planning towards which needs more approach and which less. These disciplines always focus on an Entrepreneurial Strategy Focused on Clients.
According to the strategies defined in your company, in which of these axes do you believe that your company should strengthen its efforts more and in less in which axes?
Is your Supply Chain aligned with the Company’s Discipline of Value? And if not, what would you do to solve it?
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