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Enterprise wide change superiror results through systems thinking - William J.

William J. Enterprise wide change superiror results through systems thinking - Wiley publishing , 2005. - 353 p.
ISBN: 0-7879-7146-4
Download (direct link): enterprisewidechangesuperi2005.pdf
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For example, Wells Fargo Bank has increased its responsiveness in California by setting up branches and ATMs inside grocery stores, making them more convenient and safe for customers.
Positioning Factor #2: High quality
High quality is also a great way to achieve customer loyalty. For example, Eagle Creek Travel Gear, Inc., is known for the quality and durability of its products (outdoor luggage, backpacks, and accessories).
Positioning Factor #3: Caring customer service
Good customer service is the third factor. Nordstrom Department Stores are widely known for service. So are the Ritz Carlton Hotels.
Positioning Factor #4: Personal choice
Sometimes, customers like a lot of choices. Dell Computers is known for the variety of choices offered to the consumer in terms of their computer needs. So is the Container Store.
Positioning Factor #5: Total cost
This factor is different. Total cost is what consumers must give to get their desired products or services. Based on more than just what a consumer pays for a given product or service, total cost also includes the negative psychological side to service, reputation, the product's life cycle, production waste, and working conditions, as perceived by the customer.
In sum, cost is always an issue. Cost is not value. Value concerns the ratio: what do I get for what I give (outputs/inputs). Only those firms that can build a lower cost structure than their competitors can dominate here. For example, Costco's bulk volume purchases and sales warehouse means lower operating costs.
Use the five-point star factors to determine what positioning means to your organization. The details under these five factors will be different for each industry and firm.
Enterprise-Wide Change
Questions to Ponder
• Which positioning factor does Blockbuster Video share with Office Depot?
• In which of the five positioning factors do Hertz and Marriott Hotels distinguish themselves?
• What do Southwest Airlines and Wal-Mart have in common regarding positioning?
• As change consultants and senior executives, do we understand the concept of positioning? Do we also know and understand the stories of the above firms and others like them? Do we read (or at least browse) Business Week, The Economist, Harvard Business Review, Red Herring, and Fast Company? Clients and competitors do.
• As change consultants and senior executives, do we have the clarity of purpose and courage to make the difficult tradeoffs and choices? Not choosing is a choice in and of itself—a choice not to have clear positioning.
Some answers to the questions above:
D Choice, or selection, is what Blockbuster and Office Depot pride themselves on. Each of these companies is committed to deliver more choices in the marketplace. Each has positioned itself to sustain its lead in dominating its specific market.
D If you guessed customer service, you're right about Marriott and Hertz. Compared to their competitors, their prices, quality, and choices are competitive. Service is why they stand out.
D Southwest Airlines and Wal-Mart have built a competitive edge when it comes to price/cost. Why is this successful, since we said there is a danger in focusing on costs alone? Do you understand exactly what factors provide companies with a lower cost structure and way of doing business that their competitors cannot duplicate?
Clarity of Purpose: Working On the Enterprise
D Southwest has unique ways of doing business that make it almost impossible for competitors to match them on price/cost without losing money—among them, their strategic decision to fly only one type of aircraft, the 737. This simplifies their business and streamlines their aircraft maintenance and training costs.
D Wal-Mart's inventory is a profit center, not a 70-day inventory cost (like cars at GM).
Do you know these stories well? Can you discuss them? Your competitors in India and elsewhere can and do.
Positioning Pitfalls
Executives and change consultants sometimes are confused about the specifics for finding one's ideal positioning. They
• Don't know the difference between positioning and value
• Find the definition of the customer versus the stakeholder unclear
• Don't know about the five-star model options and concepts available to them to achieve their positioning
• Are unrealistic in their expectations of positioning, wanting to excel equally in all five areas
• Don't understand that just being competitive in the marketplace on the other four star points is fine
• Forget that lowest cost is not necessarily value in the eyes of the consumer— and can usually be quickly matched by the competitor, unless their cost structure is different
• Don't know their own positioning and are unrealistically positive when comparing themselves to the competition
• Have little customer information (feedback) on the effectiveness of their positioning
• Confuse positioning with what we do well. Positioning requires being better than or unique from the competition in the eyes of the customer
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