Focus on a few operational areas

Operational excellence doesn’t require differentiation in all six areas. Most successful companies focus on only a few of the areas.

Operational areas:

1. Product offering. Adidas set record-high sales by focusing on its portfolio, where other retailers often do the opposite.
2. Strategic pricing. Everlane positioned itself as an ethical value player in the clothing industry.
3. Digital engagement. L’Oréal encouraged people to experiment online with their products.
4. Loyalty programs.
5. Multiple channel experience. Online and a store.
6. A well-functioning supply chain is crucial.