1. VALUE PROPOSITION : SYMMETRY

2. CUSTOMER VALUE ANALYSIS (CVA) 3. VALUE MAP : /PERCEIVED BENEFITS () (). 4. /VALUE ANALYSIS : Miles All cost is for function. Customers buy functions experienced through products and services 5. VALUE ANALYSIS ( LAWRENCE D. MILES) /Value Analysis : Miles All cost is for function. Customers buy functions experienced through products and services VA: - Balance between stakeholdersBalance between and expenditureSatisfaction of needsBenefits Functionsbenefits (monetary and non-monetary)Value 1 = =Use of resources ExpenditureCosts (money, people, time, energy and materials)Balance between use of resources 6Source: Value Management, Roy Woodhead & Clive Bone; Value Analysis, L.D.Miles 6. VALUE ANALYSISCompetitors . Suppliers . .. Customers. .. Company.. :/Key Activities:. Outbound Logistics:/Business Design Elements: Brands/ Customer SelectionComplementors . . . 7. THE VALUE SYSTEM Supplier V C Channel V CCustomer V C Organisations Value ChainAdapted from Exhibit 4.4 - The value system in G Johnson and K Scholes Exploring Corporate Strategy, 6th edition, Pearson 2002, p162 8. PORTERS GENERIC VALUE CHAIN INDUSTRYPrimary Activities InboundOutboundMarketing Operations Service LogisticsLogistics& SalesSupport ActivitiesFirm InfrastructureHuman Resource Management Technology DevelopmentProcurement10 9. SUCCEED WITH VALUE NETWORKShttp://davidmeggittlog.ning.com/profiles/blogs/value-networks-help-tame-value 10. DIVISION OF INDUSTRY PROCESSES: THE AUTO INDUSTRYResale Used auto dealers goods andservices Spread of value added for client Ancillary Service stations InsuranceInsurance firms Autoloans Auto loan providersShin Nittetsu,NissanNissan group groupNissanetc.Supply ofToyota group Toyota Asahi Glass,Toyota automobiles- Asumo group etc.dealers - Shimizu - DensoToyotaManufactur- Aisin, etc. Bridgestone, etc.-ing, etc.Spread ofSub- keiretsu components Product Raw materials Distribution Components assembly (OEM) Flow of activities creating added value for client 11. RECONSTRUCTION: THE EMERGENCE OF NEWINDUSTRY PROCESSES IN THE AUTO INDUSTRY EntertainmentTotal car life support information Point terminalsSpread of value added for clientCar lifeTravelStationsinformationsupport Customer agentsTraffic informationDriving Total driving support WirelessParking communication (car supportnavigation systems) Gasoline Gasoline Customer Ancillary services Resale Servicing teams Service stationsauto-related Provision ofServicingAuto insurance Point terminalsservices Card loans Loans Dealers CarsParts CarsParts & Purchase of OEMCombined Purchase of materials goods andgoods Distribution goods and Particular goodsservices(packaging)services(support) Flow of activities creating added value for customer 12. WHAT GAME IS BEING PLAYED?::/key players? duopoly game; oligopoly game; etc/options? pricing game; advertising game; etc. market share? profits?../complementary issues the players agree on, sources of conflict, etc..? one shot, repeated, simultaneous, sequential, etc..? information as a source of bargaining strength 13. The ValueNet CustomersSubstitutors CompanyComplementors Suppliers 14. The Value NetCustomersHorizontal AlliancesCompetitors CompanyComplementors Suppliers Vertical Alliances 15. VALUENET FOR AMERICAN AIRLINES American, United & Mesa are suppliers CustomersShort Haul British Airways,(NEW)Mesa Air,AmericanIberia UnitedCar RentalsLong Haul BoeingSubstitutors/Complementors Pilots AssociationBombardierAirbus 16. INTEL - A PARTIAL VALUENET Limit customer power & competitor response via Mother- board manufactureIBM manufactures AMD Customers limit dependence - alternative HP; Compaq; IBM suppliers MicrosoftNatSem / Cyrix HP (Merced)AMD / IBM INTELSun (Solaris + Merced)MicrosoftCompaq (Digital TV standards with MSoft)Digital CableTV StandardsSuppliersNetPC StandardsSolaris Compatibility ofNetPC design & MercedLimits Microsoft power in ValueNet 17. Players Added value Rules of the game Tactics employed Scope of the game 18. - ... complementors 19. : complementors substitutorssubstitutors value net? ? 20. RULES:? ? ,, ? ? (Kiwi Air) 21. TACTICS: ????? () 22. CHANGING TACTICS / Top Dog Fat Cat Lean &Puppy DogHungry 23. /SCOPE:? () delink 24. : IPOD APPLE () (, ) () Complementors ( +) /Channel conflict ( + ) (/interoperability DRM) () SIMS