How to Design better-selling Products

Professor Arnoldo Hax and Dean Wilde’s Delta Model

The Delta Model is a framework for business strategy developed by Arnoldo Hax and Dean Wilde II in the late 1990s. The Delta Model proposes a guideline on how organizations can achieve a competitive advantage for their products while creating value for both customers and shareholders.

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The Delta Model was an alternative approach to Michael Porter’s Five Forces, which was the dominant framework at the time.

According to the Delta Model, there are 3 ways to compete in the market:

Business Strategy for a Product — Delta Model — Image created by the author using www.excalidraw.com Source — https://mitsloan.mit.edu/ideas-made-to-matter/delta-model-how-arnoldo-hax-reprioritized-corporate-strategy

1. Best Product: Create a product that is the best in the market and provides the best value to the customer. The differentiators could be lower cost, superior quality, or technology.
2. Be a total solutions provider: Provide a wide variety of products and services that cover as many customer needs as possible.

For e.g., Microsoft provides a complete suite of products like Word, Excel, Powerpoint. This means that the customer will get everything they need with the same vendor.