CRS-y Assignment Example | Topics and Well Written Essays - 1000 words

CRS-y - Assignment Example 58)Managers in every success-oriented organization are faced with three key decisions to make; First, the decision on the company’s value proposition. Second, the decision on company’s value-driven operational model, and thirdly, the decision on the company’s value disciplines. The company’s value proposition entails the implicit promise to the customers outlining all values combination (Iacobucci 2011, p. 89). The company’s value-driven operational model involves integration of operation processes with the systems of management and culture, required to deliver effective value proposition (Cooper 1999, p. 56). The company’s value disciplines entail the integration of operational models and value proposition to achieve leadership in the market through competitive advantage. The Treacy and Wiersema value disciplines have impacted greatly on CRM as reviewed in the following discussion of the value disciplines. The first value discipline is opera tional excellence which involves provision of reliable products to the customers and pricing services competitively, with less or no difficulties and inconveniences to the customers. A good example of a company that has embraced this discipline is Dell (Egan 2008, p. 83). Operational excellence stresses on a specified strategic approach on production and delivery of products and services. The companies following this discipline strive for leadership in the industry through price and convenience. The companies seek ways on; overhead minimization, elimination of unnecessary production cost and business processes optimization across all organization frontiers (Mukerjee 2011, p. 167). The companies in pursuance of Operational Excellence concentrate on direct sale to customers, sale based on order rather than inventory and low-cost. Dell, General Electricals, Wal-Mart, America Airlines and Federal Express are some of the companies that have had a significant adoption of the operational e xcellence. This has helped them to be leaders in their industries by undercutting their competitors through the discipline. The companies witnessed an increase in their customer base and their sales (Kincaid 2003, p. 48). However, Operational excellence possess key challenges in maintaining a consistency customer loyalty. This is because the discipline does not focus on product innovation and a long-lasting customer relationship. Instead it concentrates largely on price and convenience in products and services. This results to high switching in buyers as they seek more innovative products, hence leading to a low customer loyalty (Kincaid 2003, p. 43). The other discipline indicated by Treacy and Wiersema is product leadership. This discipline entails product excellence through differentiation. The companies that choose to embrace the discipline shift their focus on making the product different from those of the competitors (Rafinejad 2007, p. 58). Customers may be required to pay a price premium on the products which are differentiated from the competitors’ products. Companies on this discipline strive for the ‘’state-of-art products† characterized by high creativity. Product leadership requires increased product innovation, commercialization of ideas, and pursuance of new solutions and risk taking management structure (Rafinejad 2007,