A Graduate School of Business Administration competes in the business education industry in the Greater Philadelphia metropolitan market. This is a highly competitive market that includes Ivy League schools like Wharton, state schools like West Chester, and private schools like Drexel. Apply the concepts and techniques to develop value curves for this school of business administration and for each of its competitors listed above.
Apply the six value innovation approaches learned this week to identify new market spaces and value-adding opportunities that this School of Business Administration could pursue. Based on the results of this exercise, what additional dimensions would you add to this schools value curve that you developed in Question #1?
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Notes:
Value curve is a graphic depiction of how a firm or an industry configures its offering to customers – it plots the level of a firm’s product/service relative to competitor or substitute offerings along key competitive dimensions
Innovation seeks to improve dimensions that customers value or add new dimensions that no one else offers
Value innovation can occur along 3 platforms
Product platform – physical offering
Service platform – support, maintenance, skills
Delivery platform – logistics, channel
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Ask four questions – to challenge industry norms and change the firm’s business model
What features should be reduced well below the current industry standard? (helps reduce cost)
What taken-for-granted factors can be eliminated because they add no value? (helps reduce cost)
What features should be raised well above the current industry standard? (helps enhance value-adding dimensions that have high willingness to pay)
What new factors should be created – features that the industry has never offered before? (helps develop new value-adding dimensions)
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Six value innovation approaches:
To find ideas for new or enhanced value curve dimensions, break free from conventionally defined boundaries of competition – look for new market spaces across:
1. Substitute industries
2. Strategic groups
3. Buyer groups
4. Complimentary products
5. Functional-emotional orientations
6. Time