The Strategic Triangle (3 C’s)

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The strategic triangle (3C’s) is a framework used to establish the competitive position of the company in relation to its customers and competitors.

The strategic triangle (3C’s) is a framework used to establish the competitive position of the company in relation to its customers and competitors. The framework is based on the premise that competitive advantage is determined by the ability to deliver greater value to customers at a lower cost than competitors. Strategy is formulated by optimizing the relationships between the players (company, competitors, and customers) based on the strengths to better satisfy the customers.

3 Cs

Methodology

  1. Define customer-based strategy. Segment the market by customer objectives and also by customer coverage (access). Then, identify target segments, those whose needs are catered to and served by the company.
  2. Define company-based strategy. Identify key functional areas and then find ways to improve them via selectivity and sequencing of focus on the value chain; optimizing functional performance of product; and improving cost effectiveness of the product.
  3. Define competitor-based strategy. Identify sources of differentiation via: creating a superior public image, exploiting tangible advantages, and exploiting profit and cost advantages.
  4. Tie-together. Create a coherent strategy, tying in all three considerations. This should be a logical outgrowth of any one of the 3c’s due to their interdependence.

Strengths

  • Strategies that evolve from this framework are based on gaining competitive advantage —ensuring a better or stronger matching of corporate strengths to customer needs than is provided by competitors

Weaknesses

  • Easily mistaken as recipes for developing strategies, rather than as simply strategic vantage points helpful to stimulate thinking about strategy

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