Dendro's Strategic Choice

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Strategic Choice Treacy and Wiersema (2012) argue that there are three value disciplines that a company can implement to ensure success. These are operational excellence, product leadership and customer intimacy. A company would normally choose just one of these and "act upon it consistently and vigourously." Operational excellence is defined as having "superb operations and execution" and usually involves providing reasonable quality at a low price. An example of an organization that uses this approach is Wal-Mart. Product leadership is defined as a company that is "very strong in innovation and brand marketing." Such a company would seek to provide the best products or services, and use aggressive marketing to highlight that superiority in order to build brand loyalty. Apple would be a good example of a company following that approach. The third approach, customer intimacy, is defined as "excelling in customer attention and customer service." This approach often requires firms to tailor their solutions to each individual customer. Occasionally, a company can employ two of these value disciplines. Treacy and Wiersema (1993) illustrate this point with the example of Toyota, having achieving operational excellence and from there moving into product leadership while still retaining the operational excellence. Dendro is going to follow the customer intimacy value discipline. There are a couple of reasons for this. First, the company's services are hard to differentiate.

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