Strategies That SHALL be Used for Star Companies
Javier Elenes, Business Consultant, Mexico, Member
The strategy I recommend is to deliver at least 20% more value to the customer than your competitors
. You can achieve this by improve the VALUE PACKAGE delivery to the customer.
To support that, I use a comparative V / P index
V = VALUE, measured with Quality index * Service index
Q index = Your Quality delivery / Quality best competitor in %(0-100)
S Index = Your Service / Service of best competitor in %(0-100)
P Index = Your Price charged / Price best competitor (base 100)
A STAR SHALL have a V / P index above 1.2, meaning you give 20% more VALUE than your best (biggest global) Competitor.
An example of such situation would be the following case:
a. The Quality of your best competitor is 80% and you are at 88%
b. The Service of your best competitor is 80, and you are at 88%
c. The Price of your best competitor is 100, and you are also 100 (prioces are the same),
In such case (a+b+c), your V/P Index = (88/80 * 88/80) / (100/100) = 1.1 * 1.1 / 1.0 = 1.21
Congratulations, but remember you still have room to improve your VALUE).