1.

THE CORPORATION
The Corporation needs to focus on the maximization of its strengths. As a result, the corporation can
influence the functional areas of the competition that are critical to achieve success within a certain
industry. Focusing on a key functional area may create a decisive improvement in other functions of
the competition. (for example quality improvement). By functional areas is meant for example
culture, image, products, services, technology, etc. It is also important for a corporation to make
informed decisions about subcontracting (capacity, cost structure, significant strategic advantages)
and how effectively this can be realized with respect to cost reduction (selective purchasing, stock
management, choice of commodities, use of automation).

2. THE CUSTOMER
The customers are the basis for any corporation according to Kenichi Ohmae. Without a doubt, a
corporation’s foremost objective ought to be the interests of its customers rather than those of its
stock holders or other parties. What is important are elements like needs, requirements, demands,
problem areas, buying motives, value components, decision-makers, etcetera. Segmentation of
objectives (use of products) and customers (geography, age, social interests ) and the market
(potential customers, competitors) are important for constructing and adopting a strategy.

3. THE COMPETITION
According to Kenichi Ohmae these strategies can be constructed by looking at possible differentiation
in functions such as purchasing, design, engineering, sales and maintenance. One of the most
important factors is image and this can provide the necessary power. Both Sony and Honda for
example, sell more than their competitors because they invest more in public relations and
advertising. Smaller corporations and organizations can use franchise concepts or low margins and
make the necessary investments in service.