Market Analysis Techniques 3Cs (Company

analysis, Customer analysis, competitors analysis)

What is the 3Cs Model?

The 3Cs Model is an industry/ business model, which offers

a strategic look at the factors needed for success. It was
developed by Japanese organizational theorist Kenichi-
Ohmae.

By using the 3C’s Model presented by Kenichi Ohmae, you

will have a great chance to keep things simple as you focus
on just three key components that are sure to be critical to
your success moving forward.

The 3Cs model points out that a strategist should focus on

three key factors for success.

These three key factors for success are:

1. Company
2. Customer
3. Competition

This balance within the 3C model can lead to a sustainable

competitive advantage.

1. Company Analysis
The Company needs to focus on the maximization of its
strengths. As a result, the company can influence the
functional areas of the competition that are critical to
achieve success within a certain industry. The functions
that might not be up to standard initially can gradually be
improved over time.

Focusing on a key functional area may create an

effective improvement in other functions of the
competition (For example quality improvement). By
functional areas is meant for example products, services, technology, etc.
It is also important for a company to informed decisions to contractors (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).

It’s certainly not necessary for a company to excel in one specific function. If there’s a clear
advantage in one important function, the company can then also reinforce and improve other
functions from that strength.

If labor costs are rising, it can be an attractive option for companies to outsource part of the work.
They then do need to consider the competition; if their production is outsourced to subcontractors, it
can influence the cost price. To counter this, a company can improve the cost effectiveness. Firstly,
by trying to lower the basic costs compared to their competitors. Secondly by lowering the functional
cost including those for transport. A third option would be to combine certain key functions with
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other businesses, sharing overhead costs. Examples could be transport, warehousing or call
centers.

Simple you can say that you need to answer the following three key questions during the
company analysis

1. What product and/or service is your company really good at offering?

2. What is your company vision or what do your company want to be?
3. What resources do your company have in hand right now?
Your company needs to focus on the maximization of its strengths. As a result, your company can
influence the functional areas of the competition that are critical to achieve success within a certain
industry.

2. Customer Analysis
The customers are the basis for any
organization according to Kenichi Ohmae.
Without a doubt, organization’s top priority
interest is customers rather than other
stakeholders or parties. Important elements are
their needs, requirements, demands, problem
areas, buying motives, value components, and
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. Using digital questionnaires, reviews and
platforms, a company can find out what customers are thinking and seriously include this
information in strategic decisions.

Simple you can say that you need to answer the following three key questions during the
customer analysis

1. Who are your customers?

2. What are the needs of your various customers?
3. Can your product and/or service meet these needs of your customers?

3. Competitors Analysis
Do you know where you stand in the market
related to your competition? Is the competition
trying to catch up to you, or vice versa? For
instance, a smaller competitor might not be
able to compete on cost with a bigger firm, so
you might be able to gain market share
successfully against your smaller competition.
Of course, this is just one example, and there
are nearly endless ways in which you can use
the weaknesses of your competition to claim a
bigger piece of the market for yourself.

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 Pfizer and
Sanofi 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.

Something that’s sometimes overlooked is using the difference in profit source. Where does the
company get most of its profits? With selling existing products, selling new products, selling

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services, etc. Related to this is the difference in the ratio between fixed and variable costs, which
can be particularly important to low-turnover companies. Fixed costs can for instance lower prices in
a slow market and help gain market share.

Simple you can say that you need to answer the following three key questions during the
competitor analysis

1. What are competitors offering (and not offering) that your customers need?
2. What can competitors not easily offer that you might offer?
3. How do competitors go to market (sell, service, market) that does not connect well with
customers?