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The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market
The classic bestseller outlining tactics for any business striving to achieve market dominance
What does your company do better than anyone else? What unique value do you provide to your customers? How will you increase that value next year? Drawing on in-depth studies and interviews with the top CEOs in the country, renowned business strategists Michael Treacy and Fred Wiersema reveal that successful companies do not attempt to be everything to everyone. Instead, they win customers by mastering one of three value disciplines: the highest quality products, the lowest prices, or the best customer experiences. From FedEx to Walmart, the companies that relentlessly focused on a single discipline not only thrived but dominated their industries, while once powerful corporations that didn't get the message, from Kodak to IBM, faltered.
Presented in disarmingly simple and provocative terms, The Discipline of Market Leaders shows what it takes to become a leader in your market, and stay there, in an ever more sophisticated and demanding world.
What does your company do better than anyone else? What unique value do you provide to your customers? How will you increase that value next year? Drawing on in-depth studies and interviews with the top CEOs in the country, renowned business strategists Michael Treacy and Fred Wiersema reveal that successful companies do not attempt to be everything to everyone. Instead, they win customers by mastering one of three value disciplines: the highest quality products, the lowest prices, or the best customer experiences. From FedEx to Walmart, the companies that relentlessly focused on a single discipline not only thrived but dominated their industries, while once powerful corporations that didn't get the message, from Kodak to IBM, faltered.
Presented in disarmingly simple and provocative terms, The Discipline of Market Leaders shows what it takes to become a leader in your market, and stay there, in an ever more sophisticated and demanding world.
210 pages, Paperback
First published January 1, 1995
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Displaying 1 - 30 of 43 reviews
October 17, 2019
The Discipline of Market Leaders is a must-read book for every manager person.
The book authors synthesis a group of core competencies that creates companies with outstanding results based on three operational models.
- Operational excellence: achieve a low-cost position on product and service support;
- Product leadership: build a better product, for which customers will pay a premium price;
- Customer intimacy: solve the client's broader problem and share in the benefit.
The book reinforces a message that value comes from choosing customers, and narrowing the focus of the operation is to serve those customers in a better way.
The idea is focussing on being right in one operational model to be a market leader.
The book was written twenty years ago, but the study cases and the framework presented are useful to refine business strategies.
The book authors synthesis a group of core competencies that creates companies with outstanding results based on three operational models.
- Operational excellence: achieve a low-cost position on product and service support;
- Product leadership: build a better product, for which customers will pay a premium price;
- Customer intimacy: solve the client's broader problem and share in the benefit.
The book reinforces a message that value comes from choosing customers, and narrowing the focus of the operation is to serve those customers in a better way.
The idea is focussing on being right in one operational model to be a market leader.
The book was written twenty years ago, but the study cases and the framework presented are useful to refine business strategies.
February 19, 2015
The Discipline Of Market Leaders by Michael Treacy and Fred Wiersema is an outstanding business book that should be in every business leader’s library and certainly should be a bible for every sales, marketing and product development professional. This was one of the most useful guide books I read to help me fine tune my own very effective Customer (or Partner) Focused Business Models. In simple and provocative terms, Treacy and Wiersema show what it takes to become a leader in your market, and stay there, in an ever more sophisticated and demanding world. The key message is that no company can succeed today by trying to be all things to all people. It must instead find the unique value that it alone can deliver to a chosen market. Why and how this is done are the two key questions the book addresses. Three concepts are introduced that every business should find essential; 1) the value proposition (an implicit promise to deliver a particular combination of values - price, quality, performance); 2) value-driven operating model (a combination of operating processes, management systems, business structure, and culture that allows a company to deliver on its value proposition); 3) value disciplines (desirable ways in which a company combines operating models and value propositions to be the best in their markets; this is the key take away from this book). The authors take Michael Porter's two generic competitive strategies - Differentiation and Cost Leadership - and elaborate on these and introduce a third generic strategy - Customer Intimacy. The authors describe how winning firms focus on one of these three customer value disciplines: product leadership (innovation / focus on product lifecycle management), customer intimacy (service leadership /focus on customer relationship management); or operational excellence (cost leadership / focus on supply chain management). The selection of the most appropriate value discipline is a central act that shapes every subsequent plan and decision a company makes, coloring the entire organization, from its competencies to its culture. If a company is going to achieve and sustain dominance, it must decide where it will stake its claim in the marketplace and what kind of value it will offer to its customers. Value comes from choosing customers and narrowing the operations focus to best serve those customers. Customer satisfaction and loyalty are simply the by-product of delivering on a compelling value proposition - not the drivers behind it. When a company selects and pursues one of the value disciplines, it ceases to resemble its competitors. Customer-intimate companies demonstrate superior aptitude in advisory services and relationship management. This is an incredibly difficult concept for sales and marketing professionals to grasp. They want the largest market possible. If you are customer-intimate, your market is one company at a time. This calls for hard work. Customer-intimate companies don't deliver what the market wants, but what a specific customer wants. The customer-intimate company makes a business of knowing the people it sells to and the products and services they need. It continually tailors its products and services, and does so at reasonable prices. The customer-intimate company's greatest asset is, not surprisingly, its customers' loyalty.
April 14, 2013
My Bible. Nuff said, it's that good.
November 24, 2022
You can't hope to be the best in all dimensions, so choose your customers and narrow your value focus.
The Discipline of Market Leaders pran excellent a good lens to look through when considering where to focus a company. The author gives three options:
- Operational excellence: the best price with the least inconvenience (total cost).
- Product leadership: products that push performance boundaries (best product).
- Customer intimacy: not what the market wants but what specific customers want (total solution).
I think the reality is a bit messier than these three options. But that does not take away from the usefulness of the lens.
As is the case with a lot of other business books, it sometimes feels repetitive. It didn't bother me too much because I can vary my reading speed. But I could easily see how it could bother someone else. For those who don't want to read the whole book on the topic, there is an article by the author that primarily summarizes the ideas explained in the book: https://hbr.org/1993/01/customer-inti....
The book was first published in 1995. So, some examples feel dated. There is one prescient moment, though, where the author asks the reader to consider product-focused companies in the automobile industry with the question, "Will we see an explosion of battery-driven vehicles?". As we now know, none of the existing automakers succeeded, but a new product-focused company was born.
The Discipline of Market Leaders pran excellent a good lens to look through when considering where to focus a company. The author gives three options:
- Operational excellence: the best price with the least inconvenience (total cost).
- Product leadership: products that push performance boundaries (best product).
- Customer intimacy: not what the market wants but what specific customers want (total solution).
I think the reality is a bit messier than these three options. But that does not take away from the usefulness of the lens.
As is the case with a lot of other business books, it sometimes feels repetitive. It didn't bother me too much because I can vary my reading speed. But I could easily see how it could bother someone else. For those who don't want to read the whole book on the topic, there is an article by the author that primarily summarizes the ideas explained in the book: https://hbr.org/1993/01/customer-inti....
The book was first published in 1995. So, some examples feel dated. There is one prescient moment, though, where the author asks the reader to consider product-focused companies in the automobile industry with the question, "Will we see an explosion of battery-driven vehicles?". As we now know, none of the existing automakers succeeded, but a new product-focused company was born.
March 28, 2023
An oldie but a goodie…I read this book the first time decades ago closer to it’s publication date and re-read recently. Admittedly, it isn’t the most riveting read but the concepts warrant a thorough understanding; therefore my rating of 4 stars.
Being a market leader and staying there isn’t easy as we learn either from experience, from the news or from lessons spouted by business guru Jim Collins in Good to Great, Built to Last and How The Mighty Fall.
Although many of the corporate business examples are outdated (interesting how many predictions in the book came true), the foundational principles of this book remain steadfast. If you want to be a market leader, it would serve you well to pick one of three primary market disciplines:
1 - Operational Excellence
2 - Product Leader
3 - Customer Intimacy
Once you pick a discipline, you need to be relentless in excelling in your primary discipline, and competitive in the other two areas. You need to do a deep dive to determine what you are really good at and which discipline you can excel in. This is a multiple stage, strategic process involving several company personnel. Your discipline then becomes the measure by which you make all strategic and tactical decisions.
Choose Your Customers
Narrow Your Focus
Dominate Your Market
Being a market leader and staying there isn’t easy as we learn either from experience, from the news or from lessons spouted by business guru Jim Collins in Good to Great, Built to Last and How The Mighty Fall.
Although many of the corporate business examples are outdated (interesting how many predictions in the book came true), the foundational principles of this book remain steadfast. If you want to be a market leader, it would serve you well to pick one of three primary market disciplines:
1 - Operational Excellence
2 - Product Leader
3 - Customer Intimacy
Once you pick a discipline, you need to be relentless in excelling in your primary discipline, and competitive in the other two areas. You need to do a deep dive to determine what you are really good at and which discipline you can excel in. This is a multiple stage, strategic process involving several company personnel. Your discipline then becomes the measure by which you make all strategic and tactical decisions.
Choose Your Customers
Narrow Your Focus
Dominate Your Market
August 10, 2021
This book examines how market leaders excel at one of three disciplines: product leadership, customer intimacy, or operational excellence.
Now, granted: the book is old, and the case studies are far from contemporary, pretty much everything has changed, but one thing: That every business should, in fact, decide to excel in one of those three disciplines, and that once a product (or service) leader, you gotta keep working and innovating, else competition will tear you apart.
Think about "Start with why", think about "Think different". Even a modern company like Tesla is a great example of how these teachings are still valuable in today's business world.
I do think, however, that the book could've been more compact and a lot of the information is outdated, hence the 3-star review.
Now, granted: the book is old, and the case studies are far from contemporary, pretty much everything has changed, but one thing: That every business should, in fact, decide to excel in one of those three disciplines, and that once a product (or service) leader, you gotta keep working and innovating, else competition will tear you apart.
Think about "Start with why", think about "Think different". Even a modern company like Tesla is a great example of how these teachings are still valuable in today's business world.
I do think, however, that the book could've been more compact and a lot of the information is outdated, hence the 3-star review.
July 26, 2017
1995. El libro es de 1995 y más de 20 años después sigue siendo relevante. Es una idea muy sencilla de enfoque, pero con toda la claridad necesaria para provocar la alineación.
Hay tres disciplinas de valor y para mantener liderazgo, debemos elegir la cancha en la que vamos a jugar. Cada disciplina de valor tiene implicaciones en la cultura, estructura y los procesos operativos de las empresas.
Diseñar es tomar decisiones.
Hay tres disciplinas de valor y para mantener liderazgo, debemos elegir la cancha en la que vamos a jugar. Cada disciplina de valor tiene implicaciones en la cultura, estructura y los procesos operativos de las empresas.
Diseñar es tomar decisiones.
March 12, 2021
This book written in the 90s has some concepts that are useful today but at the same time a lot of it feels outdated and mundane. If you are a business that is in the B2B sector then it is a decent read. But if you want to focus on B2C then I would skip this book. The case studies provided don't really keep you interested as they're just interviews with company employees/clients which didn't really interest me.
November 14, 2018
I really did enjoy this book, even though many have called the book outdated. This book does reference companies that are no longer in operations, but how to create a successful company and provide value hasn't really changed. Also the categories on the type of leader you plan to be is still the same.
October 13, 2025
Surprisingly relevant and useful business leadership book considering the 1995 publishing date. His focus is very much traditional brick-and-mortar stores but I'd be curious to see how these theories work in a nonprofit or professional setting.
October 24, 2025
Very insightful
This is a very insightful book. Though it’s a bit hard when trying to apply it to real business you’re running. But it really put you in a more structured thinking of what a business should focus
This is a very insightful book. Though it’s a bit hard when trying to apply it to real business you’re running. But it really put you in a more structured thinking of what a business should focus
December 26, 2025
Not a big book (in terms of size or number of papers) but it is HUGE in terms of information
It is a must read book for every person in a decision making position or wiling to be.
It teaches you also how to make your business a leader in the market. It is a very good book!
It is a must read book for every person in a decision making position or wiling to be.
It teaches you also how to make your business a leader in the market. It is a very good book!
February 3, 2018
Good enough analysis of business, but not earth shattering stuff.
October 28, 2019
This was a book I had to read for a class, and it was easy enough to read and glean lessons from the text.
June 21, 2022
This book means business!
February 23, 2023
A foundational read for understanding and developing (and/or maintaining) a competitive edge.
January 21, 2012
The first sentence of chapter 1 gets attention: “Why is it that Casio can sell a calculator more cheaply than Kellogg’s can sell a box of cornflakes? Does corn cost that much more than silicon?” Page 3 then goes on to ask other provocative questions.
The thesis of the book is that: Market leaders succeed by concentrating in one of 3 areas.
- Operational excellence – lowest cost
- Product leadership – innovative products
- Customer focus – total solution
It includes comments from several people in each of several companies about their strategy. I skimmed over these interview snippets even though they indicated the depth of work the authors went to in order to learn about the featured companies.
As with so many business books, companies that are held up as an example subsequently falter: “Over and over, companies slump within a few years of a rave review. It’s happened to IBM, Westinghouse, American Express, and Kodak. The kiss of the media turns into a curse.” (Page 191)
The authors propose that in deciding what their focus should be, executives make “three rounds of disciplined assessment and deliberation.” (Chapter 10) Good advice if you are part of the Corporate-suite.
The thesis of the book is that: Market leaders succeed by concentrating in one of 3 areas.
- Operational excellence – lowest cost
- Product leadership – innovative products
- Customer focus – total solution
It includes comments from several people in each of several companies about their strategy. I skimmed over these interview snippets even though they indicated the depth of work the authors went to in order to learn about the featured companies.
As with so many business books, companies that are held up as an example subsequently falter: “Over and over, companies slump within a few years of a rave review. It’s happened to IBM, Westinghouse, American Express, and Kodak. The kiss of the media turns into a curse.” (Page 191)
The authors propose that in deciding what their focus should be, executives make “three rounds of disciplined assessment and deliberation.” (Chapter 10) Good advice if you are part of the Corporate-suite.
July 24, 2016
Unfortunately dated to the mid 1990's with highlighted companies that are no longer even in business (ironically since they were held up as leaders in their vector), but I do get why my Organizational Strategy instructor used this for the class text. I feel it oversimplifies with its 3 vectors that describe how to narrow a company focus (organizational excellence, product leadership and customization), but in that, it does provide a starting point for rethinking how any organization wants to refocus its priorities. Quick and easy read, though again, wish more current companies were profiled and also wish this went back to discuss why some of the highlighted companies eventually failed even though they were operationally or product focused at the time.
April 3, 2021
Дуже корисно прочитати, якщо ви опинились на роздоріжжі вибору стратегії для власного бізнесу. Якщо бізнесів декілька, то варто зробити настільною книгою.
August 11, 2013
Business model generation lists this as a source on unbundled corporations. This book is an easy read and since it was written in the 90s some of the case studies are dated. Initially, I was underwhelmed. Over the course of reading it I realized that my business was a customer intimate business and not an infrastructure business like I'd thought previously. In this respect, it was helpful. On its own, it's a good book, not an amazing one.
January 26, 2015
A good book for anyone in business to read, especially if you're involved in strategic planning. The authors outline three focuses a company can excel at: operational excellence, product leadership, and customer intimacy. Of course, all companies are active in all three arenas, but to be a market leader you have to excel at one.
Only downside of the book is that some of the examples are outdated, but that's to be expected.
Only downside of the book is that some of the examples are outdated, but that's to be expected.
March 9, 2008
The core concept is that winning firms focus on one of three customer value disciplines: product leadership, customer intimacy, or operational excellence.
Trying to be all things to everybody is tantamount to being nothing for anyone.
Our company is a customer intimate firm, and this book helped crystallize some core concepts around that precept.
Trying to be all things to everybody is tantamount to being nothing for anyone.
Our company is a customer intimate firm, and this book helped crystallize some core concepts around that precept.
May 31, 2013
A relatively quick read that would good for those in marketing or business roles. It was recommended to me by folks at work and it is an approach that Gore really tries to follow. It was helpful for me in my work to understand the particular focus that underpins everything that I do at work. I did find that some parts of it were rehashing of the same point over and over.
September 30, 2014
Ugh. This was a very dated and unfriendly book. The concepts just seemed too boxed in and made no sense at times. Probably unfair, but the book was assigned for a organizational leadership session at work, where it was imbued with dated examples and a feeling of there is only one perspective about value and business drivers.
July 8, 2008
Great book that teaches you about how to think about your company in a new and innovative way. If you are looking for a good way to be able to make an impact in the operation of your business, this book is for you.
August 18, 2012
Overall, the book's premise and market disciplines are factual, but the companies used as relevant to each market discipline are not necessarily relevant any longer. IBM is no longer considered a market leader in their discipline, as well as some others.
January 26, 2011
This is a must read if you're a c-level manager or board member.
February 19, 2012
One of the best books on the basics of positioning.
May 1, 2012
great fundamental biz read
June 24, 2012
Excellent book for understanding and developing business strategy.
Displaying 1 - 30 of 43 reviews