De-commoditizing the commercial jet engine business

Abstract

This thesis project is a comprehensive application of the Delta Model at a major jet engine manufacturer. It will assess and contrast customer segmentation and customer value proposition via primary research. It will also assess and contrast the current and future state "bundle of competencies" within the firm. Utilizing the frameworks of the Delta Model, we will then define the mission of the business and the strategic agenda. Once these are understood we will determine the strategic agenda for customer targeting to determine how we attract and delight the best customers. And finally, this paper will assess the operational effectiveness of the firm to determine an agenda for improvement. This analysis will be done utilizing the Delta Model's three strategic options and eight strategic positions. -- Best Product: -- Low Cost ... what does it take to become the low-cost producer? -- Differentiation... what differentiates in the market and is it enough to demand price premiums? -- Total Customer Solution: -- Customer Integration... have customer performed activities been assessed for integration? Can scale, technology, information systems and/or other innovations and competencies be leveraged to provide solutions that will enhance customer economics? --

(cont.) Customer Relationship... has the customer base been properly segmented in order to define differentiated treatment of customer tiers? -- Horizontal Breadth... is revenue opportunities maximized at each customer tier by offering a complete set of product and services? -- System Lock-in: -- Exclusive Channel... is their barriers in place that makes it difficult for competitors to complete for the acquisition of customers? -- Dominant Exchange... is their appropriate interface between Buyers and Sellers and is that interface difficult to displace? -- Proprietary Standard... is proprietary standard possible in this industry?