Operational Excellence, Customer Intimacy and Product Leadership


Operational Excellence, Customer Intimacy and Product Leadership

Word count 2982


There are three major value disciplines according to Tracey and Wiersema:

i) Operational Excellence
ii) Customer Intimacy
iii) Product Leadership

Explain and give an example of local and international firms that is successful in implementing each of those 3 elements of strategy.


Additional information


Michel Treacy and Fred Wiersema explained the value disciplines concept in their book called “The discipline of Market leaders”. The authors identified a business model with three main competitive areas by studying the companies such as Dell, Walmart, Southwest airline, Sony and Intel. Those key competitive areas are
 Customer intimacy.
 Product leadership.
 Operational excellence.
The authors suggested that companies need to do well in all three areas to get a sustainable competitive edge in the market. However, it is not enough just do well for the company that expect to become market leader in their sector, company need to excel in one of these areas (Tracy and Wiersema, 1993). The companies which became the market leaders in their particular industry have narrowed down the business focus by aiming to deliver premium customer value accordance with one of three value disciplines. However, adding value is not a new thing to the business world and traditionally customers define the value of the product or service based of the combination of quality and price. However, it has been changed how customers define the value of product or service in many market. Currently, customers define the value by considers factors such as convenience of purchase, dependability, after sales services and etc (Tracy and Wiersema, 1993). Therefore, currently companies need to focus on achieve these value disciplines to get the competitive position in the industry. In this study, these three elements will be comprehensively explained by using examples of local and international companies which are successful in applying each of these three elements of strategy.