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Value Innovation
Size
Years of operation
Industry conditions
County of origin
Value Innovation
Offers fundamentally new and
superior buyer value
Makes competition irrelevant
Value Innovation
Places the buyer not the
competition at the center of strategic
thinking.
Questions:
1. Are we offering customers radically
superior value?
2. Is our price level accessible to the
mass of buyers in our target audience?
Value creation
Value Innovation
Two consequences:
Example:
Virgin Atlantics
Upper Class (First
Class at Business
Class prices)
The idea is a
nonrival good.
Why anyone can
copy it (more
easily)- free riders
Quantit
y
Conventional Logic
Question 1
Question 2
Question 3
Question 4
Question 5
Conventional Logic
Question 1
Question 2
Question 3
Question 4
Question 5