Customer value curves

Essentially, by rating the level at which your organization and your competitors "value" each competitive factor, you can quickly identify where your strategies diverge.

Blue ocean strategy curves

This enabled them to create a new marketplace, and is thus an example of blue sky strategy. These can be features, benefits or ways in which a product is distributed or consumed. This helps you focus sharply on the things that differentiate you from your competitors, and develop a clear and easily explained value proposition. You can also consider the horizontal axis to be the range of factors the industry invests in. It provides a useful framework for comparing your strategy against that of your competitors, by using a simple chart. Maybe a piezo-electric sensor in the trap could get a strong enough charge from the trap being sprung to signal another device? Putting the Value Curve into practice The Value Curve is sometimes criticised as simplistic, academic and overlooking of less tangible factors brand personality and so on. After all, trying to gain a foothold in an industry by copying a competitor's strategy would likely be a fruitless task. So to draw your own value curve you should brainstorm the factors of competition and list them along the horizontal axis. A simple strategy tool known as a "value curve" could be just what she's looking for. We show the ING Direct Savings Maximiser account in green, comparing it to a traditional bank savings account in blue the type where you lock your funds in for x number of months or years and a traditional bank current account in red the type your salary gets paid into and from which you access funds. Its entire marketing message resonates with an audience that wants simple, fee-free, high-interest offering. Furthermore, as markets evolve over time, they split into multiple segments and it can be difficult to determine which factors are of most importance to customers. Is there an opportunity to appeal to customers by providing something strong in this area? The real key to their success, however, was in keeping the price point low by limiting the technology features in the device not competing in this area.

A traditional standard planning framework ultimately ends up as a document, having gone through a series of steps. Finding This Article Useful? You can see that tablet PCs perform better across all the user facing features, but this additional functionality results in a higher price tag.

Value innovation

Finally, a value curve is drawn up which paints a picture of how your company invests in factors of competition now and in the future. In the Internet of Things, such technology should be possible — eventually. It may be possible to identify changes to the product that significantly alter the value proposition. Related Posts. Maybe a piezo-electric sensor in the trap could get a strong enough charge from the trap being sprung to signal another device? This enabled them to create a new marketplace, and is thus an example of blue sky strategy. Then you must adapt your strategy to cope with it. Here we are going to apply the strategic canvas and the complementary qualities to Ryanair — the Irish low-cost airline which is one of the largest in Europe. We show the ING Direct Savings Maximiser account in green, comparing it to a traditional bank savings account in blue the type where you lock your funds in for x number of months or years and a traditional bank current account in red the type your salary gets paid into and from which you access funds. The inverting required when showing price can also cause confusion. Advantages and Disadvantages Value curves help you to test whether your strategy is different enough from your competitors' to have a real impact. Low fares. By investigating the feasibility of these gaps Will customers want this?

This information allows us to see where competitors are heavily investing, and also how different products are being positioned to customers.

However value curves and value chains can be used in conjunction — bridging the internal value creation with the external factors of competition valued by our customers.

value innovation curve

She also wants to present her plan of action to the board in a quick and compelling format. Then mark along the vertical axis the extent to which the business invests in each factor of competition. By cutting out costly traditional elements such as a branch network, ATMs and additional banking products it is able to keep its business model simple and its costs down.

She's been tasked with developing a new product that will really stand out from others on the market, and she's getting ready to present her strategy for its launch to the board.

One of the key advantages of using value curves is their simplicity. These can be features, benefits or ways in which a product is distributed or consumed. Has it helped?

Value curve ppt

ING Direct introduced the ability for a portion of a regular salary to be automatically paid into the savings account. The Value Curve shows graphically the way the company or the industry configures its consumer offering. Unlike the traditional airline, it doesn't offer extra services such as in-flight entertainment, extra legroom, fine dining, or access to major airports. Is it providing value to the customers? You can see that tablet PCs perform better across all the user facing features, but this additional functionality results in a higher price tag. Ryanair has a large number of competitive factors see Ryanair Marketing Mix — although the most salient factors are as follows: 1. You can also consider the horizontal axis to be the range of factors the industry invests in. Furthermore, as markets evolve over time, they split into multiple segments and it can be difficult to determine which factors are of most importance to customers. A traditional standard planning framework ultimately ends up as a document, having gone through a series of steps. Ancillary services e. The factors on the horizontal axis show the key criteria or "competitive factors" that companies in this industry think are important. Whether you are working on a new product development or you are refining an existing product, Chan and Maugborne suggested four ways to alter a product based on Value Curve analysis. It may be possible to identify changes to the product that significantly alter the value proposition.
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The Value Curve