Companies such as LEGO, British Petroleum, Baxter, Virgin, and Unilever are reversing the law of diminishing returns by redefining what business they are in practice, and then form a powerful customer focus. The author defines the customer focus as getting value for customers (even if you sometimes help them buy from your competitors) and customers (who volunteered to continue to patronize your business because of the value.) To achieve a high level of customer focus, LEGO, for example, should see themselves as the "entertainment" business, not a toy construction business. Focusing on what customers want in the entertainment market place, LEGO You can find plenty of opportunities for growth. Traditionally, companies have focused on gaining more market share and move more goods and services with a maximum margin. But this approach is too easy for competitors to imitate, and cost advantages will eventually decrease. The author delves into the six essential components for a successful strategy based on customer focus: to provide power to the customer, get the customer to choose a particular business than its competitors, the development of new market space, providing an integrated, using abundant and reusable resources such knowledge and information and the establishment of enhanced interaction. "Hide
by Sandra Vandermerwe Source: MIT Sloan Management Review 13 pages. Publication Date: 01 Oct 2000. Prod. #: SMR053-PDF-ENG
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