3C: Company, Customer, Competition, Kenichi Ohmae (1975)

The 3C model, developed by Kenichi Ohmae in 1975, is a strategic framework that helps organizations analyze and understand three critical factors in their business environment: Company, Customer, and Competition. Ohmae, a Japanese management consultant, is known for his contributions to strategic management and his expertise in competitive analysis.

The 3C model emphasizes the interrelationships and dynamics between these three key elements and their impact on an organization’s competitive advantage and success.

  • Company: The first “C” in the model represents the internal analysis of the organization. It involves understanding the company’s strengths, weaknesses, capabilities, and resources. This includes assessing factors such as the company’s financial position, organizational structure, technological capabilities, brand reputation, and overall strategic objectives. By evaluating these internal aspects, companies can identify their core competencies and areas where they need to improve to gain a competitive edge.
  • Customer: The second “C” focuses on the external analysis of the customer or market segment. It involves understanding the needs, preferences, behaviors, and expectations of the target customers. By analyzing the customer segment, organizations can identify opportunities for value creation and develop products or services that cater to those needs. Understanding customer insights and trends is crucial for effective market segmentation, targeting, and positioning strategies.
  • Competition: The third “C” represents the analysis of the competitive landscape in which the organization operates. It involves assessing current and potential competitors, their strengths, weaknesses, strategies, and market positions. By understanding the competitive dynamics, organizations can identify their competitive advantages, differentiate themselves from rivals, and develop effective strategies to gain market share. This analysis helps organizations anticipate competitive threats, identify opportunities for differentiation, and make informed decisions about pricing, product positioning, and marketing tactics.

The 3C model provides a comprehensive framework for strategic analysis by considering both internal and external factors. It helps organizations align their resources and capabilities with customer needs and competitive forces. By evaluating these three dimensions, companies can develop strategies that leverage their strengths, address customer demands, and effectively compete in the market. The 3C model is a valuable tool for strategic planning, market positioning, and gaining a sustainable competitive advantage.