Kenichi Ohmae: Mr. Strategy and The Founder of "Reform of Heisei"

  Kenichi Ohmae: Mr. Strategy and The Founder of "Reform of Heisei"

Kenichi Ohmae

Kenichi Ohmae (大前 研一)

Born             February 21, 1943 (age 79)
                            Kitakyūshū, Fukuoka Prefecture, Japan
Alma mater     Waseda University
                            Tokyo Institute of Technology
                            Massachusetts Institute of Technology

Kenichi Ohmae is a Japanese organizational theorist, management consultant, Former Professor and Dean of UCLA Luskin School of Public Affairs (Located in University of California, Los Angeles, United States), and author, known for developing the 3C's Model.

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"Additional information"

        ⭐  ค.ศ.1943 ตรงกับ พ.ศ. 2486 เป็นปีที่ 9 ในรัชกาล พระบาทสมเด็จพระปรเมนทรมหาอานันทมหิดล พระอัฐมรามาธิบดินทร (20 กันยายน พ.ศ. 2468 – 9 มิถุนายน พ.ศ. 2489) เป็นปีที่ 162 สมัยกรุงรัตนโกสินทร์ ทรงครองราชย์: 2 มีนาคม พ.ศ. 2478 - 9 มิถุนายน พ.ศ. 2489

        ⭐  ผู้สำเร็จราชการแทนพระองค์:

                    - พระเจ้าวรวงศ์เธอ พระองค์เจ้าอาทิตย์ทิพอาภา

                    - ปรีดี พนมยงค์

        ⭐  นายกรัฐมนตรี: แปลก พิบูลสงคราม (คณะราษฎร)

        ⭐  2 กุมภาพันธ์ พ.ศ. 2486 สถาปนา มหาวิทยาลัยเกษตรศาสตร์ และ สถาปนา "มหาวิทยาลัยแพทยศาสตร์" ปัจจุบันคือ มหาวิทยาลัยมหิดล

        ⭐  20 สิงหาคม พ.ศ. 2486 ญี่ปุ่นยินยอมลงนามให้ไทยรวมสหรัฐไทยเดิม (เมืองเชียงตุงและเมืองพวนในรัฐฉาน) และสี่รัฐมาลัยเป็นดินแดนของไทย

        ⭐  12 ตุลาคม พ.ศ. 2486 สถาปนา มหาวิทยาลัยศิลปากร

        ⭐  1943 in Japan.

                    Emperor: Hirohito

                    Prime Minister: Hideki Tōjō

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3C's Model

3C's Model is a marketing strategy that was invented by Kenichi Ohmae, since 1982 in The Mind Of The Strategist: The Art Of Japanese Business, page 91-98, called The Strategic Triangle, is a living entity with its own interests and objectives.

Three main factors in formulating a marketing strategy.

Credit: https://www.slideteam.net/3c-analysis-model-with-customer-and-competitions.html#images-1

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Key Takeaways:

    (Page 98) Accordingly, the shrewd strategist will always try to view the strategic three C's in perspective and try to influence the dynamics of the relationships among them so as to expand the corporation's relative advantage. 

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    3C's Model has been designed and refined to help businesses achieve better. Companies need to keep track of changes in the markets in which they do business, such as demographic changes. distribution channels, technology, customer size, etc., because when the market changes, as a result, the company has to change as well as the appropriateness of the existing strategy. and adapting strategies to adapt to changes. Therefore, the 3C's Model is a powerful tool that can help companies manage change. 

    There are three factors as follows:

    1. Customer Analysis

            Customers are the base of every business. Company's main objectives is to meet the needs of both existing customers and prospective customers. Therefore, the company must focus on what customers want. including the incentive to buy and the value that customers have for each type of product of the company If the company can make customers interested in the company. The company will also be able to generate interest for investors. The company's first objective should therefore be related to the interests of its customers, such as needs, solutions. Incentives for purchases, etc., are not aimed at the interests of shareholders. When meeting customer needs is effective The progress and benefits that shareholders or all stakeholders should receive will come naturally.

            Business strategies that focus on customer behavior or qualities include:

                1.1 Segmenting by objectives

                        It is a division of customers according to the purpose of consuming the product, such as coffee. While some people drink socially (coffee breaks) when customers have different dietary intent. The strategies used must be different.

                1.2 Segmenting by customer coverage

                        Segment the market to cover each customer segment, for example by geographic region. Demographics or by marketing channels Then compare the marketing costs required to attract customers. with the rewards that will be received Then choose a strategy that is worth (trade off) for each investment group.

                1.3 Segmenting the market one more time

                        In a highly competitive market Competitors use tactics to attract imitation customers that are almost indistinguishable. A well-used customer categorization strategy in the past may have become less magical because it lacks uniqueness. Therefore, companies should review the assortment of customers and formulate new strategies to suit the changing circumstances.

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Key Takeaways:

• Doing in-depth consumer research is the best way for you to figure out how to appeal to your target market. Being able to create catchy catchphrases and creative ads is going to be your bread and butter.
• Demographic data plays a huge part in this analysis. Figuring out your business’s target market and their desires will drastically improve the success rate of your marketing strategies after they are put into circulation.
• Data such as disposable incomes, likes, dislikes, where they get information, if they make impulse buys or not, and even how they respond to the client service or product already available is invaluable.
• Use answers from in-depth interviews, questionnaires and user tests to gain insight into the consumer mind. Use that insight to create concept diagrams, communication designs and personas that will boost your company’s popularity and hopefully help you spread your product or service into the world.
• If they know and trust the corporation you’re promoting, their response will be much more noticeable.
• There are several tools on the Internet you can use to analyze customer responses. You can see answers posted on popular FAQ sites like ask.com or answers.com to find clues about customer concerns and questions the customers have. But you must be careful because there are also decoys from the provider. Enter the service name or product name, or its category name, plus words like “concern” or “question” as the search phrase to find postings that can be clues. For example, if the company handles snowboards, you can search for questions and concerns about the company’s brand or snowboarding itself.
• If it is difficult to conduct a survey in the real world, you can do it on the Internet using a questionnaire service provider. You can also use a cloud sourcing service for charged questionnaires, although the user segments may become biased. SNS can be a valuable information source as well.

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    2. Competitor Analysis

            Companies can formulate a competitive strategy by dividing tasks into sections such as procurement, design, manufacturing, sales, and service. Companies need to understand as much as possible the mission of their competitors and the strategies they implement. The information is very helpful in formulating strategies that cover the strengths of competitors.

            Competitive strategies include:

                2.1 The power of an image

                        Use the image of the product. Both Sony and Honda sell better than their competitors. Because they invest more in public relations and in advertising products than competitors until the product image is superior. For a small company or business unit, it may be possible to build their image as well. Not by publicity or competitive advertising. but may use the concept of franchising or providing services that will impress customers until they tell each other

                2.2 Capitalizing on profit and cost structure effectiveness

                        Utilize the cost and profit structure to benefit. They should consider where most of their profits in their business come from, for example, from the sale of existing original products. or from selling new products or from the sale of services The source of profit from each side has different proportion of fixed cost and variable cost. Therefore, the company may lead the sale of goods or services with different sources of profit. as a competitive strategy, for example, if the company has a low fixed cost It will be able to set the price of slow turnover products to be lower than competitors. This will help the company to have more customers and have a higher market share.

                2.3 Tactics for flyweights

                        Small businesses should invest in gradual product incentives instead of going full-on. Flexible incentive measures will help companies get a better return on sales.

                2.4 Using the Hito-Kane-Mono principle

                        It's a popular phrase among Japanese business planners. mean people - money - things They believe The company's management and planning can be consistent and clear only when the three resources are in a truly balanced state. There is neither too little nor too much. When all three resources are in equilibrium It will be the strength of the company that can beat its competitors. creating a state of equilibrium. 

                        Companies should use this strategy in order, namely:

• Placement of competent personnel (Hito) to allow colleagues to participate in decision-making. Talented people use resources responsibly. Not wasting or causing waste of money. Resources that may be in the form machinery and equipment production technique Knowledge of production processes and work including the cost-effective use of raw materials
• When personnel are creative in their work and are already qualified personnel. It would have a job that generates good income (Kane) for the company.
• In addition to having additional income Quality personnel will be able to use resources such as materials and things (Mono) properly and appropriately. Attract new customers to the business and have a competitive advantage

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Key Takeaways:

• You can use the aforementioned websites and search engine results to discover rival brands and companies in addition to the list of data your employer offers. Comparison websites are popular in every industry and make investigating their products and services quite straightforward.
• It’s important to note that, a hamburger shop for example, is going to have competitors in not only the fast food industry but in the restaurant industry and supermarket industry as well. You’ll have to narrow down your results so that you can put more emphasis on how to compete with the top three to five rival businesses.
• After determining the main competitors, analyze them. How much effort do they put into their website? What catchphrase do they mainly use? What do they provide? What tools (e.g., newsletters and SNS) do they use to invite users to their website? What is their overall marketing logic? Ideally, you’ll want to investigate the competitors from as many angles as possible so that their marketing activities can be completely understood.
• Competitor analysis is mainly done by visiting their websites, subscribing to their newsletters, visiting their stores and/or receiving the service (heuristic analysis) they offer. In addition, you can perform a user test to compare your client company with their competitor. It’s best to use an SEO tool to find out how the competitor is talked about on the web as well as to obtain the SEO-related information. For large-scale websites, you can use a competitor website analysis tool such as SimilarWeb to obtain useful information.
• Analyzing competing businesses in this manner will allow you an inside look into what their customer’s experience. This knowledge is invaluable. You’ll be exposed to the good and bad decisions the rival marketing department made and you’ll be able to utilize that knowledge in pursuit of success and profit.

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    3. Corporation Analysis

            The aim of this strategy is Increasing the strength of the company in various fields to be related to competitive conditions and competitors.

            Company-focused business strategies include:

                3.1 Selectivity and sequencing

                        Companies need to build on their strengths to stay competitive, which is the key to success in their businesses and industries. But to win business It is not necessary for the company to be good at everything. Just choose to create a distinctive (decisive edge) on the main subject. one thing, such as improving the quality It can lead to important advantages in other matters such as culture, image, product, service, technology.

                3.2 A case of make or buy

                        Do it yourself or hire to do it. In case of higher wages Companies must decide which work to do themselves or outsource their work to maintain their competitive edge. or make that ability even higher.

                        Such a decision may be made for reasons such as:

• If doing it yourself, there may be a limitation on production capacity. cost structure
• Outsourcing or purchasing It may give some important strategic advantages. or can reduce the cost of purchasing Inventory Management Creating a variety of products

                        However, the company may take the opposite approach, merging upstream entities in the core of the business that were previously purchased from suppliers (backward integration methods). No matter which method you choose The more accurate and early decision makers have a cost advantage over the later decision makers.

                3.3 Improving cost-effectiveness

                        There are three basic measures to increase cost effectiveness.

• Reduce basic costs that are too high compared to competitors.
• Reduce functional costs such as transportation costs.
• Combine some core tasks with other businesses to spread overhead, such as a warehouse or call center.

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Key Takeaways:

• The last step you’ll want to take with this method requires you to analyze your own client’s corporation. You’ll want to know what marketing strategies have worked for them in the past and what ideas have failed. The best way for you to do this is, again, from the customer’s viewpoint.
• From the results of the customer and competitor analyses you have done so far, enumerate the company’s “strong points” and “resources” which produce them. If you are having trouble finding them, ask real customers for their opinions. By asking why they prefer you client’s product, you can get points to compare with the competitors and how customers are responding to current marketing activities.
• If you can check web analytics data with a tool like Google Analytics, it will also help you. Contents you think attractive tend to have high values for the average session duration and PV.
• Based on such data, find out which pages of the company’s website the users are interested in and which pages they are not. This can be a clue about products and services matching the needs of the existing users.
• Referrer information is also helpful. See which websites link to the client’s website, and in what context, to discover third party opinions of how the client’s website is regarded. The referrer URL can be used for this purpose.

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Conclusion:

        The main aim of the 3C Model is to leverage a company's strengths to meet market demands. Differentiate yourself from your competitors. If you can, you can expect long-term profits and growth.

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4I Concept

    (Ohmae, 1995, pp.13) Kenichi Ohmae describes "globalization" as a phenomenon that diminishes the role of nation-states. by proposing the concept of 4I, consisting of Investment, Industry, Information technology and individual consumption

    Accordingly, Kenichi Ohmae concluded that globalization will result in the 4I having the same property is being something that can be moved, and will enable business operations to be carried out in any part of the world, just to bring the necessary inputs together, which may not require the use of intermediaries to find the inputs or product distribution channels, because the world market will use a trading model that can supply all factors by itself, without going through the state process or if there are obstacles, they can often be solved by themselves. Such trade patterns can be found in today's society where the economy can operate smoothly and without government intervention.

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Key Takeaways:

• Ohmae (1991, 1996) popularized these ideas by claiming that nation states were of declining importance in global affairs and that the emergent "borderless world" would being unprecedented prosperity
• Ohmae goes on to mention that nation-states were once needed to provide the "four I's" of economic growth: investment, industry, information and individuals.
• Ohmae welcomes the changes brought by multimedia and, echoing the position of evolutionary liberals, he suggests that nationalism must be reduced if not eliminated to improve the quality of life of the world's individuals. He argues that nationalism is a cover for bureaucratic expansion and the protection of inefficient industries and leads to demands for equity from political regions that act as a drag on the dynamic economic regions which drive economies. 
• Ohmae's desire to see economic regions freed of national influence. It is certainly true that if nations released economic regions from the burden of equity, more wealth would be produced. Then again, the same would hold for releasing dynamic industries and individuals from the imperatives of national redistribution. 

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Kenichi Ohmae, the author of the book “The Mind Of The Strategist: The Art of Japanese Business,” who gave an example of Japan. Japanese will look forward and must focus on Internationalization along with Internalization. He said that Japanese and Thai businesses should go this way, to create a closeness in the business of both countries and the one that will make the connection happen is the "service sector".

Publications

Ohmae has written a number of books, including

- The Mind of the Strategist

- The End of the Nation State

- The Borderless World

- Triad Power

 

  

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Read more:

- Adisorn Kaewchansilp. รู้จัก 3C’s Analysis Model และ 3C’s Content Strategy ปัจจัยสำคัญในการทำการตลาด. from: https://thewhitemarketing.com/3c-analysis-model-strategy/

- Intrend.trueid.net. 3C's Model ทฤษฎีทางธุรกิจที่จะนำพาแบรนด์ไปสู่ความสำเร็จในอนาคต.

- Oonvalley. ธุรกิจบริการ มีมูลค่ามากกว่าที่คุณคิด!. from: https://www.oonvalley.com/Article/Detail/46106

- Pal-in.com/Contemporary.html. โลกไร้พรมแดน.

- Thinkinsights.net. How to Apply the Ohmae’s 3Cs Model for Business Success. from: https://thinkinsights.net/strategy/3c-marketing-framework/

- Thinkers50. Kenichi Ohmae. from: https://thinkers50.com/biographies/kenichi-ohmae/

- Waca.associates. 3C’s Model (3C analysis business model). from: https://www.waca.associates/en/web-analytics-dictionary/3cs-model/

- ปิยนันท์ สวัสดิ์ศฤงฆาร. 3C Model [Ohmae]. from: https://drpiyanan.com/2019/06/23/3c-model-ohmae/

- ปิยนันท์ สวัสดิ์ศฤงฆาร. สารานุกรมการบริหารและการจัดการ. from: https://drpiyanan.blogspot.com/

- เอกชัย บุญยาทิษฐาน. เคนนิจิ โอแม (Kenichi Ohmae) ขุนพลเอเชียสุดยอดกลยุทธ์อีกท่านหนึ่งเหมือนกัน. from: http://www.oknation.net/blog/manage/2015/12/31/entry-1

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