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

  • Arnoldo C. Hax
Chapter

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.

Keywords

Restricted Access Strategic Position Customer Experience Strategic Option Product Option 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Arnoldo C. Hax
    • 1
  1. 1.Sloan School of ManagementMassachusetts Institute of TechnologyCambridgeUSA

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