The value disciplines of market leaders

Michael Treacy and Fred Wiersema

Three different value disciplines can be identified for brands: cost leadership, product leadership and client partnership.

The value disciplines of market leaders

Michael Treacy & Fred Wiersema

Based on analysis of the strategies of market leaders, Treacey and Wiersema defined three different value disciplines:

  1. Cost leadership

  2. Product leadership

  3. Client partnership

COST LEADERSHIP

  • Combination of low price, quality, and buying convenience that 'no one can match'

  • Standardisation, simplification, control

  • Strict norms, aimed at fast transactions

  • Culture of efficiency; abhorrence of squandering

PRODUCT LEADERSHIP

  • Breaking new grounds in products and services; offering the newest and best products

  • Strong focus on R&D and market exploitation

  • Loose adaptable organisation structure

  • Room for experimentation

  • Culture aimed at stimulating fantasy,...

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