"become that target audience’s “obvious choice” supplier"

Mais um desfile de temas habituais neste blogue: eficientismo, objectivos versus consequências, obliquidade, originação de valor, clientes-alvo, monopólios informais.

"There seems to be consensus that the purpose of a business is to make money. In other words, success is equated with money. Therefore, everything is given a price tag including people, humanity, health, safety, organizational culture, work climate, values, morality, ethics, pride of workmanship, and the environment.

Consequently, based on theories of operational efficiency, decisions are reduced to an analytic process of determining which solution is economic and which is uneconomic. The one that costs less wins.

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No one denies the necessity for a commercial enterprise to pursue revenue and a healthy profit margin. The criticism against “making money” is that it should not be professed as the purpose of a business system.

Rather, earning a profit margin is not the purpose of a business but a “prerequisite” for operating a sustainable business. Please do not disregard this distinction between purpose and prerequisite as a matter of semantics, for it is nothing of the sort. Profits are the applause for a job well done, and receiving a standing ovation is the cry for an encore. It is a show of being in demand; it is the proof of a success!

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The price people are willing to pay for a product or service is equal to the perceived use value they anticipate receiving from their purchase or investment. Because not everyone has the same perception of what constitutes use value, not everyone is a prospective buyer of your brand or your kind of product or service—hence the recognition of market segmentation and the identification of different target audiences.

Rather than creating use value similar to one’s competitors, different expressions of use value can be created by changing the business’s transformation process.

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The profit margin is thus equal to the utility that a product or service delivers to its intended target audience. Therefore, the challenge of any business, with the exception of monopolies and oligopolies, is to add more utility to its value proposition targeting a specific audience than its immediate competitors. In other words, pursuing this strategy to become that target audience’s “obvious choice” supplier—and thus standing out as the only choice in the hearts and minds of your market segment."

Trecho retirado de "The Root Cause: Rethink Your Approach to Solving Stubborn Enterprise-Wide Problems" de Hans Norden