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The delta model is a strategic framework used to define profitable positions in the service industry. It consists of a strategic triangle, aligning strategic options with a firm's activities, and an adaptive process. Demographic data are insufficient for segmenting services consumed frequently, and transaction data plays a major role in identifying segments. The delta model includes the strategic triangle, which offers three strategic options: best product, customer solutions, and system lock-in. Aligning these strategic options with a firm's activities ensures congruency between strategic direction and execution through operational effectiveness, customer targeting, and innovation. The adaptive process focuses on aligning core processes with the chosen strategy to make progress against the strategic agenda and avoid a commodity-like outcome.
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Strategy and Segmentation
Segmentation = Classification. Necessary to do Science Segmentation: Demographic data are not sufficient when dealing with services that are consumed with high frequency. In these cases data from transactions can play a major role in identifying segments.
Competitive Analysis
Delta Model
