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The Delta Model: Creating New Sources of Growth and Profitability in a Networked Economy

In: The Delta Model

Author

Listed:
  • Arnoldo C. Hax

    (Massachusetts Institute of Technology)

Abstract

Our fundamental premise is that the essence of strategy is to achieve customer bonding. At the core of bonding are the attraction, satisfaction, and retention of the customer. We have identified three very distinct strategic options for attaining this objective, as displayed in the triangle in Fig. 2.1. We have chosen the triangle to depict the different strategic options not simply because it is a visual icon that is easy to remember, but also because it represents the letter delta, which stands for transformation and change. The delta theme extends to the labeling of the business model in this book. We refer to the three strategic options for customer bonding as Best Product, Total Customer Solutions, and System Lock-In. Initially, we will introduce them as if they were completely different ways of positioning the business. Ultimately, you will see that a sophisticated strategy plays simultaneously in every corner of the triangle, depending on the way you choose to serve the heterogeneous diversity of your customers.

Suggested Citation

  • Arnoldo C. Hax, 2010. "The Delta Model: Creating New Sources of Growth and Profitability in a Networked Economy," Springer Books, in: The Delta Model, chapter 0, pages 15-31, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4419-1480-4_2
    DOI: 10.1007/978-1-4419-1480-4_2
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