Ohmae’s 3C Model (Strategic Triangle)

Editor's Note: Take a look at our featured best practice, KPI Compilation: 800+ Corporate Strategy KPIs (186-slide PowerPoint presentation). This presentation is a comprehensive collection of Key Performance Indicators (KPI) related to Corporate Strategy. A KPI is a quantifiable measure used to evaluate the success of an organization, employee, or process in meeting objectives for performance. KPIs are typically implemented [read more]

Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Dr. Kenichi Ohmae, a Japanese organizational theorist and Strategy guru, proposed the 3C Model in 1982.  The concept was published in his book, “The Mind of the Strategist: The Art of Japanese Business.”

The Ohmae 3C model, also known as “the Strategic Triangle,” is a strategic framework that assists in developing the fundamentals of Business Strategy for any organization.

Ohmae’s insights stemmed from his extensive experience in consulting and his deep understanding of the global business landscape, which led him to advocate for a balanced approach that integrates crucial elements to achieve competitive advantage.

The framework facilitates providing strategic insights into the factors essential for the success of an enterprise.  The model argues that effective Strategic Planning hinges on leveraging organizational strengths through corporate-focused strategies, aligning these strengths with market demands via customer-centric approaches, and surpassing competitors by employing competitor-focused tactics.

The focus of the model is on customers instead of shareholders, based on the premise that customer centricity ultimately leads to the accomplishment of shareholders’ interests.

Ohmae’s 3C Model (Strategic Triangle) has its applications in Strategic Planning, Market Analysis, and guiding Decision-making processes.

The 3C Model makes a case for the executives to carefully comprehend 3 core elements before devising their strategy.

1. Customers
2. Company (or Corporation)
3. Competitors

These fundamental components are critical to laying the groundwork for a successful Business Strategy. Organizations that can effectively integrate these 3 C’s into their strategy are capable of penetrating the appropriate segment of the market.

Each C is independent, but has an impact on others—e.g., a rival launching a cheaper product that completely satisfies your customers’ needs compels you to reassess your Corporate Strategy.  Let’s discuss the core elements a bit further.

Customers

The customer is a critical component of the Ohmae’s 3C model (Strategic Triangle). Maintaining a customer-centric approach is crucial when developing and comprehending a product or service.  It is imperative for the organization to comprehend, fulfill, and attend to the requirements, problems, expectations, and buying motives of its clientele as opposed to those of its shareholders.  This can be done by using various digital tools, questionnaires, and techniques.

According to Ohmae’s paradigm, customer strategies serve as the fundamental basis for all other forms of strategies.  Without a firm customer-centric strategy, organizations fail to meet the demands of shareholders and other stakeholders.  Incorporating customers’ requirements, problems, expectations, buying motives, and decisions into a firm’s strategy simplifies its course to achieve growth.  For instance, Apple focuses on user experience, innovation, and design to meet customer expectations for high-quality technology products.

Company

The next element of the Ohmae 3C model pertains to developing an organization’s internal resources to compete effectively.  The focus is on the company’s internal strengths and capabilities, including its resources, skills, and organizational structures.  By prioritizing the optimization of its competencies and internal resources, an organization can foster competition, which is essential to attaining success.

The ability to make well-informed decisions is regarded as a critical element that can address several challenges.  Organizations can make more informed decisions by concentrating on a certain niche or a critical functional domain (e.g., products, services, technology, organizational culture, and so on).  Excellence in one functional domain can pave the way to excel in and build strengths in other domains or functions.  For instance, Toyota leverages its expertise in Lean Manufacturing and Continuous Improvement (Kaizen) to maintain efficiency and high quality in its operations.

Competitors

Competitors have a huge influence on an organization’s objectives, methodologies, operations, effectiveness, and standing.  Analyzing the competition involves understanding the market landscape, competitors’ strategies, strengths, weaknesses, and potential moves.  An exhaustive competitive analysis of the market helps a company identify its direct and indirect rivals.

Interested in learning more about the strategies and approaches under Ohmae’s 3C model? You can download an editable PowerPoint presentation on Ohmae’s 3C Model (Strategic Triangle) here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

• Top 100 in Strategy & Transformation
• Top 100 in Organization & Change
• Top 100 Consulting Frameworks
• Top 100 in Digital Transformation
• Top 100 in Operational Excellence

Want to Achieve Excellence in Strategy Development?

Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.