The Centres in the Tree diagram are primary categories of commercial focus derived from the modes of engagement in the market.
Each Centre, epitomized in a 2-3 word phrase, refers to diverse business choices flowing from a set of interrelated principles. Understanding of the approaches to interacting-for-benefit is therefore taken for granted. Channels between Centres define alternative and complementary business strategies as listed.
Much more detail can be found in marketing textbooks.
Improvements many be focused on performance, styling, design, functionality, safety, gimmickry, durability, reliability, servicing, packaging, &c. or on generating a stream of new models or related products.
Controlling costs is critical and may be attempted by copying competitors, reverse engineering or reducing numbers of parts and assembly costs.