This is part 3 of 4 blogs which will cover the different customer value propositions that a company can use to compete in the market place.
Some people consider this a must-have. There are some sectors and definitely some companies that don’t see it as priority. Those companies don’t see it as a mechanism to make themselves different from other companies. In some cases, consumers are not sensitive to it. It might be an after though during the buying decision process. What are we talking about?
You either have it or you don’t but it is a matter of perspective. It is also a matter of what level your competition is at.
The quality of your product can be something that consumers identify with your company, good or bad. Many high end brands, like Porsche or Coach, are known for their quality. Jaguar was known for their quality but that reputation took a hit when Ford bought it. Ford started to use their parts within Jaguar vehicles which irritated Jaguar’s consumers. They expect high quality, handmade workmanship going into every vehicle. Putting in mass produced part was not consistent with that picture.
In following a quality model, it comes with extra costs to ensure that the end product always meets the needs of the consumer. Lean and Lean Six Sigma is commonly used to help increase the quality of the end product while staying economical. Consumers, however, are willing to pay a higher price for that increased product. The higher quality may decrease headaches that consumers have. It can help the company set itself up as a brand of quality.
What companies can you identify that compete based off the quality of their product? Which companies have fallen off that pedestal, in your opinion?
Have a productive week.
Kevin MacDonald is a Business Consultant at L6S Business Consulting Inc (www.L6SBC.ca). L6S offers services in management consulting, Controller and CFO contracting, and lean management with either project work or teaching/mentoring of staff. Kevin has his CMA accounting designation along with a Black Belt in Lean Six Sigma.
Kevin is active in the community by volunteering for the South Edmonton Business Association, the Fringe Festival, Goodwill Industries of Alberta and donates blood at the Canadian Blood Services.