Market-Driven Principles

• Know your market. Know what your customers want, know how your competitors will react. Find a way to provide value better than the competition.
• Customer has a final say (they choose). Based on operational factors (price, service), product features (design, style, technology), and customization (to meet my needs).
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  • Customers looks into these three scores.
  • They decide what pillar is the most important for them.
  • They choose a product that is best in the pillar they care about and are average in the other pillars.
    
  • You have to be the best in one pillar and be good enough in the other two.
• Fair value.
  • Companies should aim to provide superior value in one area while maintaining fair value in the others.

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Find out what your product is delivering on each of these axes. Then figure out where your competition stands. Long-term strategy: choose one axis that you are going to excel and on the others good enough. Short-term strategy could be to choose one axis, and then later some other.

Making this strategic decision on value resource allocation, hiring, and overall business structure.