The 3C Model by Ohmae was developed by the Japanese organizational theorist Kenichi Ohmae, by the successful and optimum integration of these 3 factors (Customers, Competitors, and Corporation), the aim of sustained competitive advantage can be accomplished.
It offers a strategic look at the factors needed for success. These are the customer, the competitors, and the corporation. The primary goal of the 3C model should be the interest of the customer and not those of the shareholders because a company that is genuinely interested in its customers will automatically take care of shareholder interests.
The Factor of 3 C’s Model
The primary goal should be the interest of the customer and not those of the shareholders because a company that is genuinely interested in its customers will automatically take care of shareholder interests, as well as they need a full understanding of who the competition is, and what that competition is capable of doing. If a company can bring together those 3 C’s successfully in the strategy, they should be able to find the way into the right part of the market. Rather than focusing on what it is that they do best, they might feel the pull of going in several different directions while hoping to hit it big.
Customers – The customers have needs and want and the company understands the requirements of the customers. The company should be able to understand, meet, and cater to the needs and demands of the customers rather than of the shareholders of the company.
Competitors – The business needs to conduct a thorough competitive analysis in the market figuring out that who are the direct competitors and who are the indirect competitors. Finding out their core strengths, business strategies, values, objectives, sales strategies, marketing strategies, and other such crucial facets is important to work out the plan to beat the competition and gain the advantage.
Corporation / Company – The company should be genuinely interested in the customers as doing the same will automatically take care of the shareholders, profits, sales, and other crucial objectives of the business. The customer should always be at the focal point of every business aspect.
The 3C’s provide a great framework within which you can think about your business. This isn’t the most complex model for making strategic business decisions, but that is exactly the point – it doesn’t have to be. By boiling business down to these three basic C’s – the customer, competitors, and corporation – you should be able to think clearly and make sound, logical strategic decisions consistently.
Understanding the 3C Model Competitive Analysis
The factors for consideration, listed in the main body of the circles, are fairly self-evident. In the 4 areas where the circles intersect, you have the following:
Competitors’ Advantage – this area is where the competitors’ products offer features that cause the customer to prefer these other products over yours and where they are willing to pay for this differentiation. You cannot be good at everything and sometimes you may have to accept that your competitor having some success in the market which is what is lack of.
Price war – there is little differentiation between products and where the customer is still willing to pay the price demanded. Your customers have trouble seeing your value versus your competitor’s and the results are a price war.
Competitive Advantage – this area is where a company’s products offer features or other qualities that cause the customer to prefer your product over a competitor’s AND where they are willing to pay for this differentiation.
Other Ohmae’s 3C Model Templates