This strategy aims to accomplish cost leadership. Here the main focus centres on automating manufacturing processes and work procedures in order to streamline operations and reduce cost. The strategy lends itself to high-volume, transaction-oriented and standardized production that has little need for much differentiation.
A strategy of operational excellence is ideal for markets where customers value cost over choice, which is often the case for mature, commoditized markets where cost leadership provides a vehicle for continued growth. Leaders in the area of operational excellence are strongly centralized, with strong organizational discipline and a standardized, rule-based operation.
Product leadership as a competitive strategy aims to build a culture that is continuously bringing superior products to market. Here product leaders achieve premium market prices thanks to the experience they create for their customers.
The strategy of Customer Intimacy focuses on offering a unique range of customer services that allows for the personalization of service and the customization of products to meet differing customer needs. Often companies who pursue this strategy bundle services and products into a “solution” designed specifically for the individual customer. Customer-centric companies tend to have a decentralized organization which allows them to learn and change quickly according to customers’ needs. The focus of the organization is on optimizing the customer “life time value” instead of on the turnover of one single transaction.
Although it is possible to combine two strategies, it’s advised to have a main focus on only one strategy. When the main focus is set on Customer Intimacy, the goal of the organization is to build a long-term relationship with its customers. A lot of time and effort is invested to gain knowledge about their (potential) customers, to set up a customer database and to deliver tailor made products and services. One way of gaining customer insight is to create a Customer Journey Map.
This blog will explain what a Customer Journey Map means and how it can improve your organizational goal to create happy customers (read: Ambassadors) and keep the customer retention high. Finally, a mapping will be done between the different phases of the Customer Journey Map and the solutions offered by SAP.