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Ohmae’s business model

Introduction to 3C model

 Developed by the Japanese strategy guru Kenichi Ohmae

 Enlists three significant key factors which gives sustained competitive


advantage
The 3C’s model

Corporation

Customer Competitor

Sustained Competitive advantage


Organizational Examples of the model
Corporation

 Corporate‐based strategies are functional in nature. They aim to maximize


the Corporation's strength by following ways :-

– Selectivity and sequencing


 Ex. Vodafone

– Make or buy
 Ex. Nelco

– Cost effectiveness
 Ex. Ambuja Cements
Customers

 Corporation must segment the consumers in order to establish a strategic


edge over its competition

 There are two ways in which differentiation is done,

– Segmentation by objectives
 Ex. Mont Blanc

– Segmenting by customer coverage


 Ex. Santoor
Competition

 Strong and sustained differentiation vis‐a‐vis competitors form the core of


competitor based strategies

 It can be constructed based on the following parameters :-

– Power of image
 Ex. Harley Davidson

– Capitalizing in profit and cost structure differences


 Ex. Big Bazaar
Case Study

 Organization :- Pratham NGO

 Mission
- To ensure “Every Child in School and Learning Well”

 Program- Read India


- “Read India” program helps to improve the reading, writing of the
children in the age group of 6‐14 years.
3 C’s model for Pratham

Other
Competition NGO’s,
Corporation Pratham other CSR
activities

Promoters,
Customers
Public
Japanese win Strategy

Enter low end Expand to medium


“Win the World”
of the market and high ends

Focused Group Marketing using “Mega Events”


target marketing social media
The 3C Advantage

Corporation

 Simplicity of implementation
 Trustworthy and award winning organization
 High proportion of revenue earnings into core operations

Customer

 Value in the form of branding, (eg. Pratham supported by Fair and Lovely Foundation)
 Students internships and concurrent project certificates

Competition

 Promoter value
 Transparency in workings
 Organizational vision as a transparent and accountable organization
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YOU.