Ohmae’s 3C Model (2024)

Many different strategic planning tools helping organisations to compete effectively exist. One of the most famous of these is Ohmae’s 3C Model, developed in 1982. The model integrates what the author believes to be the 3 most critical elements that managers initiating a strategy should be focusing on. The elements are: The Customer, The Corporation and The Competitors. The model states that neglecting any one of these factors when designing a strategy will have serious consequences for its success. Not only is it important to analyse each of these factors in isolation, but also how they interact with each other.

Ohmae’s 3C Model (1)

The author goes into more detail into exactly how to analyse these components in the model and we have outlined the key points below.

Customer Strategies

Ohmae suggests it is important to segment customers in any way that is possible. This may be in terms of how they use the product, which customers can be reached at a reasonable cost or there may be a dramatic shift in customer preferences. Analysing make-up of these customer segments, and tailoring your strategy based on this, is crucial for long-term success.

Corporate Strategies

Selectivity and sequencing is a strategy Ohmae argues is essential for generating long-term profits. There are an infinite number of different ways an organisation could function, but deciding on one that plays to your strengths and pursuing it is the first step to success. The organisation can then branch out once this strategy has started to raise capital. Trying to pursue too many different ventures can have catastrophic consequences. Another important decision is make or buy; the organisation must decide whether it will manufacture its own products and parts or buy them in.

Competitor Strategies

Brand image is one of the most common ways an organisation attempts to set itself out from the crowd and it is particularly important in markets where all products are very similar. Different profit and cost structures are also often used to differentiate your own products from your competitors.

The key aim of the 3C Model is to capitalise on your organisational strengths and match these to the market needs and do so in a way to set yourself apart from your competitors. If this can be achieved, you can expect to generate long-term profits and experience high growth rates.

Ohmae, K. (1991).The Mind Of The Strategist: The Art of Japanese Business, McGraw-Hill, 1991

Ohmae’s 3C Model (2024)

FAQs

What is the 3C model of Ohmae? ›

12 Apr Ohmae's 3C Model

The elements are: The Customer, The Corporation and The Competitors. The model states that neglecting any one of these factors when designing a strategy will have serious consequences for its success.

What are the 3 C's of strategy? ›

This method has you focusing your analysis on the 3C's or strategic triangle: the customers, the competitors and the corporation.

What is the 3 C's model? ›

The 3 Cs of Brand Development: Customer, Company, and Competitors. There is only a handful of useful texts on strategy. Any MBA student will be familiar with these: Competitive Advantage and Competitive Strategy by Michael Porter.

What are the 3 C's of marketing explained? ›

One of these fundamental principles is the three C's of marketing. The three C's – customers, competition, and company – are essential to creating a marketing strategy that will resonate with your target audience, differentiate your offerings from your competition, and effectively communicate your brand's value.

What is the 3C model of decision making? ›

Clarify= Clearly identify the decision to be made or the problem to be solved. Consider=Think about the possible choices and what would happen for each choice. Think about the positive and negative consequences for each choice. Choose=Choose the best choice!

What is the 3 C's approach? ›

Communication, collaboration, coordination: The 3 Cs guiding successful cross-functional teams. It takes a wide variety of skills, perspectives, and expertise to build a next-generation product.

What does the three 3 C's stand for? ›

We are all innately curious, compassionate, and courageous, but we must cultivate these values — the 3Cs — as daily habits to foster the independent thinking, free expression, and constructive communication that will enable our society to reach its full potential.

What is 3Cs method? ›

The chromosome conformation capture (3C) experiment quantifies interactions between a single pair of genomic loci. For example, 3C can be used to test a candidate promoter-enhancer interaction. Ligated fragments are detected using PCR with known primers.

What does the 3Cs principle stands for? ›

These 3 C's are Cards, Conversation, and Confirmation. These are essential components for writing a good User Story. The Card, Conversation, and Confirmation model was introduced by Ron Jefferies in 2001 for Extreme Programming (XP) and is suitable even today. So, let us examine these 3 C's for writing User Stories.

What is the 3C theory? ›

The 3C Model by Ohmae was developed by the Japanese organizational theorist Kenichi Ohmae, by the successful and optimum integration of these 3 factors (Customers, Competitors, and Corporation), the aim of sustained competitive advantage can be accomplished. It offers a strategic look at the factors needed for success.

What is the 3C analysis strategy? ›

About the 3C Analysis Template

The template contains a framework for analyzing your company's internal and external environments—the three Cs stands for Company, Competitors, and Customers. The template helps you identify the key factors that affect each of these areas and understand how they impact your business.

What are the 3 C's criteria? ›

The Three Cs of Requirements: Consistency, Completeness, and Correctness.

What are the 3 C's of a business plan? ›

The purpose of this article is to provide you with a quick summary of the three C's of a good business plan. These three C's include: (1) having a concept of what your business is all about; (2) identifying who your customer or client will be; and (3) figuring out how the cash flow in your business will actually work.

What are the 3 C's of success? ›

The duo says regardless of whether a goal is shared, there are “three C's” for success: communication, compromise and consistency. All three C's are helpful in any relationship, but one of these elements becomes especially important in each of three different sets of circ*mstances.

What is a 3C sales strategy? ›

3C's Model

This model focuses your analysis on the 3C's or the strategic triangle: the company, the competitors, and the customers. Only by integrating these 3 factors into your business strategy, can you maintain a competitive advantage in the long-term. The first C is the company.

What is the 3C model of positioning? ›

In order to achieve this, it's essential to focus on the 3 C's of product positioning: Customer, Competition, and Company. By understanding these three elements and their interplay, you can create a compelling and differentiated product positioning that helps your product succeed in the market.

What is the 3C model of leadership? ›

3-C Leadership Model

This three vertex diagram illustrates the balanced relationship among the three 3-Cs of leadership: presenting a challenge, building confidence, and providing coaching.

What is 3C model of teaching? ›

In the 3C model, choices and consequences are integral. Enhancing this aspect involves providing immediate, constructive feedback. This real-time insight into the implications of their decisions aids learners in understanding and learning from their choices.

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