THE HAXIOMS OF THE DELTA MODEL The Center of Strategy is the Customer You dont win by beating the competition;you win by achieving customer bonding Strategy is not war; its love A product centric mentality is contraining; open your mindset to include customers, the suppliers, and the competitors as your key constituencies Try to understand your customers deeply, Strategy is done one customer at a time Commodities only eist in the mind of the inept; Commodities eist when we dont understand the customers needs and !ust ofer the same me too products services to everyone The foundation of Strategy are two" Customer Segmentation and Customer #alue proposition and the $rm as a bundle of competencies, %etrics are essential; eperimentation is crucial &e!ect the two Trusims" The Customer is always right and ' know the customer needs and how to satisfy them() Strategies of Customer *ondingBest Product'S an inward looking approach( Attention is centered on the product economics, the value chain, and the abilities to develp the capacities to deliver the best product( +roducts tend to be standardi,ed and unbudled( The customer is genetic, massive, faceless and served through mass distribution channels, which contributes to the commodia,ation of the business(The central focus is the competitor, which we are trying to e-ual or surpass(The highest limitation of this approach is that it generates the minimum amount of customer bonding( 'ts obsessive concern with competitots lead to imitatiob abd price war, resulting in rivalry and convergence(Strategic +ositions./ 0ow Cost Attentio on e1cient cost infrastructure that allows o2ering the most attractive prices in the market( Disadvantage 3 This results in lower margins and pro$ts(4/ 5i2erentiation 't is an attempt to incorporate into the products some features r functionalities that make it di2erent from the rest of the competitors and that the customer values enough to pay a premium for this di2erentiation(Disadvantage Technology has advanced and right as your product reaches the market and competitors see it as a viable opportunity they can easily imitate it( #ery little Customer loyalty, when a customer sees another product with better features they will switch(6ithout abandoning the attributes based on the best productoption, you need to embark on a transformation that will take you closer to the customer( 'f you attract, satisfy, and retain the customers based only on the product characteristics, your attention tends to stay focused on the product, not the potential future gain and long term relationships that customer bonding brings(Strategy 2 Total usto!er Solution7ere focus switches from the product to the customer, from product economics to customer economics(