Upload
diablo518
View
505
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Media Management 2009 Group 4 Assignment (KTH&SSE)
Citation preview
The Future of CompetitionMedia Management Course
Group 4
Zhang Yuanyuan : [email protected]
Zhong Wei : [email protected]
Chi Mingli : [email protected]
Guo Xing : [email protected]
Outline
Abstract
Key points
Example
Abstract
In buyer–seller relationships, the focus has moved beyond individual firms to value-creating networks formed by key firms in the value chain that deliver value to the end consumer.
The article develops a rationale for value-creating networks using three core building blocks: superior customer value, core competencies, and relationships.
The rationale is developed based upon an understanding of the value-creation process and its links to core capabilities of firms in the network.
The importance of inter-firm relationships in realizing the true potential of the value-creation networks is also highlighted.
The authors argue based on their sample analysis of some examples that competition in the future will shift to the network level from the firm level.
The influence of some emerging business tools such as electronic commerce on redefining value creation is also discussed.
Key Points
Value-creating networksSuperior customer value
Understand value
Value is the relationship of a firm’s market offering and price weighed by the consumer against its competitor’s market offering and price.
Step of creating better value than competitors
fully integrate the resources use the core capabilities deliver a product that fully satisfies the needs at a competitive price create superior customer value
Multi-benefit model of choice
Two measurement dimensions: the importance of benefit and the performance of firm on benefit
To understand customer value, one needs to go back and revisit the To understand customer value, one needs to go back and revisit the marketing concept.marketing concept.
Value-creating networksSuperior customer value
Firms that can deliver
superior value
in the marketplace will win
the battle for the consumer or customer.
Value creation is more complex in business Value creation is more complex in business markets.markets.
Value-creating networks Core competencies
Core capabilities, while few, are the key to delivering superior value. They provide the means to deliver superior performance on the attributes that are important to the buyer.
To be a core competency, the skill must …
add significant value to the market offering
help the firm move across multiple markets
be performed at a superior level that very few firms can emulate.
The competency gives firms the ability to deliver performance on The competency gives firms the ability to deliver performance on important benefits.important benefits.
Value-creating networksRelationships
Firms are moving into an environment…
in which they will not compete against
each other but will become a member
of a network of firms that will compete
against another network of firms.
Value-creating networks are firms that come together to create Value-creating networks are firms that come together to create customer value.customer value.
Value-creating networksRelationships
The ideal partner is…
the one who adds significant value to
your market offering
and at the same time presents low risk as
a partner.
Develop strong relationships with key partners who can add value to the Develop strong relationships with key partners who can add value to the market offering.market offering.
Facilitative Integrative
Loser Developmental
low
high
Operating risk
low highValue added to
partner
Evaluation of potential partners
Value-creating networksThe model
Doing a value network analysis challenges the firm and its model of Doing a value network analysis challenges the firm and its model of doing business.doing business.
The model uses the three core
concepts of value creation,
namely superior customer
value, core capabilities and
relationships, to propose
a reciprocal model that
captures the nature of
Interrelationships between
the three core concepts.
E-Commerce
E-Commerce is to help distinguish between product value-added and E-Commerce is to help distinguish between product value-added and process value-added.process value-added.
Negotiated Bid
Deep relationship
Bid Relationship
high
low
Product value added
low highProcess value
added
Relationship between product and process value
The firm with the most value
to offer will likely be able to
negotiate a higher price than
the lowest bidder who provides
less value. The greater the
impact of the seller’s product
values upon the buyer’s product
the greater the seller’s ability to
extract a premium price.
Example
Computer Weekly Introduction <Computer Weekly> was established in 1992, and today is the No. 1 sale IT newspaper in China.
The statistics in 2007 showed that its market share was 71.55% and the coverage rate was 74.09%.
Its official website Shudoo provides varieties of information, resources, and IT services, which make it become a one-stop portal website.
Official website: http://www. shudoo.comOfficial website: http://www. shudoo.com
Analysis
Official website: http://www. shudoo.comOfficial website: http://www. shudoo.com
Computer Weekly
Value-creating networks and e-commerce
In 2004, Computer Weekly established co-partnership company with Tom Group which has extensive business and rich management and marketing experience. They began to search for new market resources including network resources, human resources and capital resources. Computer Weekly soon expanded its brand influence overseas. At the same time, the co-partnership company developed new areas such as data analysis and consultant, which provided clients complete service about market information.
In 2008, Computer Weekly created cooperation with SNDA Group, which is the leading online game company in China, and entered the game industry. Nowadays, the traditional print media are facing fierce competition. The e-commerce becomes a new way out to gain profits in this competitive industry.
References
Articles
Konthandaraman & Wilson
The Future of Competition Value-Creating Networks 2001
Online resources
http://www.shudoo.com/
http://www.cpcw.com
http://www.snda.com
http://news.xinhuanet.com/newmedia/2005-03/04/content_2648218.htm
http://it.people.com.cn/GB/42891/42893/7932555.html
Thank you!
Group 4
2009.01.26