You are on page 1of 4

Week4

Assignment#4:ValuesdisciplinesbyTreacyand
Wiersema

Coursename:

Marketing

Lecturer:

Mrs.ChiYeunGulickxLee

Team
:

Number5

Class:

IB05

GroupmembersandStudentNr.

Name,Lastname

StudentNr.

AntoniaStoyanova

1683139

MehmetYilmaz

1686782

NadhiraAlchatib

1687089

DianaCazacu

1680188

TableofContents
Tableofcontents
.pg.1
Marketingweek4
Assignment#4:TreacyandWiersemaModel
Question1pg.2
Question2....pg.2
Question3.pg.3
Question4.pg.3

Bibliography
..pg.3

ValuedisciplinesbyTreacyandWiersema

Question1:ComponentsoftheTreacyandWiersemamodel
AccordingtoTreacyandWiersema,therearethreedifferentvaluestrategiesthatorganizations
usetocreateaddedvalueanddifferentiationfromitscompetitors.Theydistinguishthefollowing
strategies:

1. OperationalExcellence
2. ProductLeadership
3. CustomerIntimacy/CustomerPartnership
ThetheoryofTreacyandWiersemaisausefultoolinformulatingastrategyforanenterprise
(bySBU).Choosingavaluetobefollowedstrategyplaysanimportantroleinthestrategic
marketing.

1.Operationalexcellence
Outstandingperformanceofoperationalprocesses.

2.ProductLeadership
Thequalityoftheproductisatthecenter.Developinginnovativeproductsisthepremiseofthe
organization.TheR&Ddepartmentisveryimportantandthereisoftenarelativelyyoung
market.

3.CustomerIntimacy/CustomerPartnership
Therelationshipwiththecustomerisking.Theorganizationexcelsinrelationshipmarketing.A
customerrelationshipmanagement(CRM)programplaysanimportantrolehere.The
organizationspursueapartnershipbecausethecustomersdonotbelieveinonetime
transactions,butinlongtermrelationships.

Question2:ThetheorybehindtheTreacyandWiersemamodel
TheValueDisciplinesmodelbyMichaelTreacyandFredWiersema
describesthreevalue
disciplineswiththehelpofwhichorganizationscancreatevalueanddistinctivecharacter
relativetoitscompetitors
operationalexcellence
whichfocusesonprovidingreasonably
highqualityproductsandservicesataverylowprice,
customerintimacy
whichhasastrong
customerfocussincetherelationshipwiththecustomerplaysthemostimportantrole,and
productleadership
whichfocusesonthesearchfornewproducts,newmarketsandnew
techniques.Anycompanyshouldchooseoneofthesevaluedisciplinesandfocusonit,which
playsanimportantroleinstrategicmarketingplan.
ItisnearlyimpossibleforacompanytobegoodateverythingsoTreacyandWiersemasuggest
thatinordertobeamarketleaderanenterprisemustexcelinonlyonedisciplinewhereitaims
tobethebest.Thisdoesnotmeanthattheothertwodisciplinesshouldbeignored,butthatthe
companyshouldstrivetomaintainrelativelyhighstandardsintheothervaluedisciplinesas
well.Foranorganizationitisofgreatimportancethatitoffersuniquevalueinordertosucceed,
whichcanbedonebyfocusingonacertainarea.Valueisdefinedbythecustomerandit
includesallaspectsofthecustomerexperienceofbuyingaproduct.TreacyandWiersema
emphasizedthefocusonthecustomerrelationshipbydescribingtheCustomerIntimacyvalue
discipline.
2

Question3:WhatvaluedisciplinedoesStarbucksexcelat?

Whenitcomestovaluediscipline,StarbucksfocusesontwoofthethreestrategiesProduct
leadershipandCustomerintimacytogainacompetitiveadvantageonthemarket.The
companyprovidesitscustomerswiththebestproductandservice,whilemaintainingproficient
performanceinbestprice.Furthermore,thecompanyisveryinnovativeandmovesquicklyfor
developingnewproductsforitscustomers,evenatthecostofdestroyingexistingproducts.
Subsequently,Starbucksspecialisestouniquecustomerwantsandneeds,thiswaythe
corporationcanbuildlongtermcustomerloyalties.ByresearchingStarbucksannualreportof
2014,itisclearthatthecorporationstillholdstheirpositionasthebestcoffeesellingfirm.
CoffeestoresintheU.S.evencompeteswithrestaurantsandotherspecialtyretailersforretail
locationsandqualifiedpersonnelfortheirstores.

Question4:Howisthisappliedinpractice?
Tobeginwith,inordertoachievethefirstvaluedisciplineoperationalexcellencecompanies
needtominimizethecostsofproductionandtoeliminatealltheunneededproductionsteps.
Moreover,theyaimtheirattentionatofferingproductsandservicesfortheircustomersat
competitivepricesandwithleastpossibleinconvenience.Tocontinuewith,thoseorganizations
thatpursuethecustomerintimacystrategy,firstofall,needtomakeamarketsegmentationin
turntopreciselyidentifythetargetmarketandthenstriveforcreatingproductsandservicesthat
wouldmatchexactlycustomersneedsandwants.Asfarasthethirddiscipline,product
leadership,isconcerned,companiesmuststrivetocomeupwithproductsandservicesthatare
leadingedgeandinnovativeinordertostayontopoftheircompetitors.Theyareableto
implementthisstrategythroughcreativitytheabilitytotransformquicklythenewideasinto
productsandservicesandlastly,throughdevelopingnewsolutionstotheirlatestproductsand
servicesissues.

Reflections:whatdidwelearn?

Inordertobecomeamarketleader,acompanymustaimtoexcelatonlyonevalue
discipline.
Incontrast,consideringthatStarbucksannualreports,itittounderstandthattheother
twovaluedisciplineneedtobetakeninconsiderationwhenoperatingabusiness.

Bibliography
1. Treacy,M.,&Wiersema,F.(1993).CustomerIntimacyandOtherValueDisciplines.
RetrievedDecember6,2015,from
https://hbr.org/1993/01/customerintimacyandothervaluedisciplines
2. AnnualReports.(2014,September28).RetrievedDecember6,2015,from
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolreportsannual