Competing in a flat world

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SAN IGNACIO DE LOYOLA UNIVERSITY
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Global Marketing Management

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COMPETING IN A FLAT WORLD-------------------------------------------------
Chapter 7 to 12
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Professor:
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PATRICK NEWMAN
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Students:
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-------------------------------------------------HERNANDEZ CASTRO, DANIEL JESUS
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KORNMAALER, MORTEN
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NOYA ARMESTAR, ROQUE ANDRES
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MAJLUF SCHMATZ, KYARA
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CHUMBEZ GONZALES, DEBORAH
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VILLACORTA ZAPATA, JOSEPASTEUR
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Lima, 2009
Chapter 7- Build the company around the customer

Summary
This chapter focuses on putting the consumer at the center of the company, without giving up their identity, organization and profitability. With this, lines between companies have begun to blur.
Launching a new business:Customer needs can change, but a flexible organization with a flexible supply can reconfigure itself to meet the changes of its customers.
In a flat world, chains and product lines change, the only fixed point is the relationship with the customer at the center.
Customers evoking supply chains:
The network orchestrator has to pay attention to immediate customers as well as end consumers. The tastesand demands of these consumers shape the products needed by retailers. The transparency of the flat world can connect the network orchestrator with both the direct customer and the end consumer, and even connect suppliers with data from the checkout at the end of the supply chain.
The network is built around the potential needs of future customers. A specific supply chain is evoked from this networkbased on the needs of a specific customer. The addition of a network orchestrator might appear to add more cost to the system bye adding another layer to the process, but better coordination and access to a broader network of suppliers can make the process more efficient and cost-effective for customers.
Co sourcing with customers:
In the flat world, the supply chain begins with the customer, therest of the chain is organized around the customer. The success and profit of each division are tied to the success of the customer so that customer has their undivided attention.

Understanding and anticipating customers:
The customer-centric organization needs to understand the needs of target market segments to select the best positioning and value proposition for their portfolio of segments.The customer-centric company not only should be responsive to customers, but should actually anticipate the customer needs and the needs of their end consumers.
Increasing customization:
Empowered end consumers now expect the mass customization and instantaneous response.
Engaging in Co-Development:
Making customers full partners in developing new products can lead to new sources of innovatingideas and results that better meet their true needs. By inviting consumers, customers, developers and other partners to become active participants in the network, companies can increase engagement with their products and the success of new launches.
Why disintermediation didn’t happen: The need for thick connections:
Human relationships in business, as in most other things, are still paramount....