~ Three Platforms for a Company’s Business Strategy?

According to a Boston Consulting Group (BCG) study published in the early 1980’s an enterprise has three bases for its strategy:

  • Best cost advantage
  • Service Advantage
  • Technology Advantage

Examples could be:

  • Best Cost Advantage: Walmart and IKEA
  • Service Advantage: Jet Blue and Trader Joe’s
  • Technology Advantage: Tesla and Apple

Within the laboratory products market there are many examples of this broad umbrella of strategies.

The BioPharm market has a number of technology-based companies: Biogen, Merck, GSK. In the laboratory products market examples are Mettler-Toledo and Corning.

Cost advantage companies in the laboratory products market are many of the private label businesses such as Labcon and Kord-Valmark.

Service businesses in the Scientific Products market are the distributors serving the scientific, government, academic and industrial customers. It is routine for them to have service levels exceeding 98% on orders with over 20 line items from among more than a million SKU’s.

Oh, and overlay the idea that “Size Matters” into your thinking. That’s a future topic.