Maintaining Market Leadership Through Customer Focus

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Maintaining Market Leadership Through Customer
Focus

• Susan Wheeler
• SVPMA
• February 4, 2004

www.consultpathfinder.com
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Pathfinder Background

• Founded 2000
• Three principals
• Process improvement through focused business
  strategy
• Target Customers
• Software, engineering, hardware
• Non-profit

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Topics

• Understand What Customers Value
• Define Types of Market Leadership
• Identify Customer-Driven Market Anchors
• Achieve Market Leadership by Delivering Value

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Dont Lose Sight

• The role of Product Managers
• Focus on the business
• Once successful companies
• Case-in-point Gateway

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Customer Value

• Can you be everything to everyone?
• Who are the right customers?
• Does it pay to fire customers?
• What do customers value?

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Customer Value Reflects Benefits and Costs
Costs
Benefits
Value Costs - Benefits
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What is Value?

• In the mind of the customer, a product or service
  is of value if what is delivered is Worth What
  Was Paid

How do you know what customers value?
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Value Dimensions

• Operational Excellence
• Starbucks
• Dell
• Customer Intimacy
• Nordstroms
• IBM of the 60s and 70s
• Product Innovation
• Intel
• Nike

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Value Dimensions

• Mastery of one
• Proficiency in two

What is your value focus?
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Customer-Driven Market Anchors

• Anchors lens
• Guiding principals
• Enable autonomy

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Success - Starbucks
Merchandising
Premium Pricing
Quality
Focused advertising
Branding
Community
Aggressive growth
Location, location, location
Fun
Personalized service
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Market Anchors - Starbucks

• Convenience
• Location
• Easier ordering
• Quality/consistency
• A latte in Cleveland is like a latte in
  Sacramento

Driven by Company Culture
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Success Dell Computer
Convenience
Customer Service
Low Price
Build-to-order
Integrated logistics
User-friendly
Manufacturer direct
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Market Anchors - Dell

• Price
• Integrated logistics
• Convenience
• Online ordering
• Build-it-yourself
• Payment options
• Online problem solving

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Gain Market Leadership

• Relation between anchors and market leadership
• What are your market anchors?
• Using anchors to move towards market leadership
• Where are you now?
• Where are you relative to your competitors?

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Where are You on the Value Continuum?
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Value Chain Analysis

• Systematic approach to analyzing activities that
  create and build value
• Product Management can influence or control many
  value chain activities
• Primary and Support activities

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Primary Activities

• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service

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Support Activities

• Procurement
• Technology Development
• Human Resource Management
• Firm Infrastructure

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Recap

• Gain deep understanding of what your customers
  value
• Identify your key value dimension
• Determine how well you deliver value