Are You Seeking Value From Your Vendors Beyond Price ?
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If you are in business today you should read on because I am going to share what I think is the most valuable strategic thing you can do to improve your company.
C.K. Prahalad was one of the most influential management thinkers in the world and co-authored one of my favorite books, "The New Age Of Innovation, Driving Co-Created Value Through Global Networks". He knew that the most successful companies do two things well: 1. deliver value to customers one at a time (N=1) and 2. deliver that value by orchestrating a global supply chain (R=G). Now what does this have to do with your business or in particular your fitness business, where most of my clients compete ? Picking the right vendor partners can create tremendous value (R=G). Not everyone sees vendors as assets and that is short sighted. Let me share an example.
At fitmarc we deliver turnkey group fitness solutions including everything from education to training, and from consulting and marketing to information systems in the cloud (our new club count product is really cool and quite affordable). We deliver expertise and insights based on vast experience and orchestrated from sources around the world. We deliver Prahalad's R=G. For the small price our customers pay they get A LOT of value with Les Mills group fitness solutions. Prahalad professed that wise businesses focus on their customers and rely on valuable vendor partners to help them service their customers. However, not every business embraces this approach with many in our industry being short sighted, stepping over dollars to pick up dimes. They actually believe that the vendor relationship is about the cheapest price or that they can do everything on their own or get away with. In Prahalad's view and in mine this is a huge strategic error.
What do you think ? When you do business with vendors, do you see them as global partners delivering value beyond price ? Are you operating your business as an N=1 R=G or do you only seek the cheapest thing you can buy or get away with ? Contact me Bryan O'Rourke and share your views and please check out my slideshare presentation below on managing group fitness programs and learn more about our new Club Count solution.
