Market Discipline: Provide Value and Grow
“As operationally excellent companies create an unmatched value proposition of best total cost, the question comes up: What’s in it for them? There is only one answer — growth. Other market leaders might raise prices to exploit their product advantage, but such a tactic runs counter to the operational excellence strategy.” — Discipline of Market Leaders, Michael Treacy.
What are some top quality brands that come to mind? Why? Are they a great value? Or do they cost more?
Let’s take something as simple as a Hershey’s chocolate bar. Buy one at the convenience store, and you know what you’re getting — an expected product at a fair price from a company that has grown over the past 100 years.
Like Hershey, I believe that we can do it all — maintain operational excellence, provide a high-worth product for the best cost, and, in turn, grow as a company.
At my company, our manufacturing process ensures that our products are built consistently, require little maintenance, and can be sold at a competitive price to our consumers. On top of that, we differentiate our brand by offering value added services such as on- and off-site training to customers and a field services team at the ready.
And, we’ve had our issues. But, we recognize them, fix them, put processes in place to ensure they don’t happen again … and move on. To build a credible brand, though, you gotta be willing to take those first steps of recognizing what needs to be fixed. I’m sure that the first chocolate bar recipe Mr. Hershey used wasn’t his last.
What other tweaks or add-ons would make your product better without compromising quality?
If you can keep offering your customers excellent products at the right price, they will return for more and recommend your brand to others. Providing this type of value will bring growth to your company.
What keeps your customers coming back for more?
Now, how can you improve on that?