Contents Table of Figures 1 Building Value 2 Value Proposition 2 Value Positioning Map 3 Tailored Value Chain 4 Strategy as Ecology 7 Bibliography 8 Table of Figures Figure 1 Value Proposition of Dish TV 2 Figure 2 Positioning maps for Indian DTH industry 3 Figure 3 McKinsey's Generic Value Chain for Dish TV 4 Figure 4 Activity Systems Map of Dish TV 5 Figure 5 Distribution Channel Design 6 Figure 6 Example of Dish TV's Initiative to reduce taxes (Value Sharing Activity) 7 Building Value In the case of Dish TV, the various activities that the company has chosen to undertake reflect the presence of a distinctive value proposition, which is supported by a value chain tailored to achieve it. As we have learnt, the presence of both a value proposition and a tailored value chain are essential for the sustainability of any firm in the industry. Value Proposition Using the framework given by Magretta1, we can arrive at the distinctive value proposition of Dish TV by answering the 3 questions (which customers, which needs and what relative price). By answering these questions we see that value proposition of the customers is ‘to serve the TV owners in India, by fulfilling their needs for entertainment with a wide variety of choice in programming along with a superior quality of transmission, at a relative price discount’ compared to other companies in the industry. Figure 1 Value Proposition of Dish TV Due to the unique nature of the Indian DTH industry where differentiation is not possible in terms of programming content (due to government regulations prohibiting exclusivity) and customers are extremely price sensitive, we would be hard-pressed to find truly distinctive value propositions among the competing firms th... ... middle of paper ... ...profitable win the short term, in the long term this kind of strategy will eventually end up destroying the eco-system. In a highly fragmented industry, as the largest company by subscription, Dish TV needs to continue taking the responsibility of following a keystones strategy along with other top competitors. Bibliography Works Cited Iansiti, M. & Levien, R., 2004. Strategy as Ecology. Harvard Business Review. Joseph, L., 2013. Innovation Impact. Business India, 9 December, p. 60. Magretta, J., 2011. Creating Value: The Core - Staking Out Your Company's Unique Competitive Position Using Michael Porter's Elements of Strategy. Cambridge, MA: Harvard Business Press. Times of India, 2011. Digital Cable Providers - Digital HD Channels. [Online] Available at: http://www.videocond2h.com/WSC/dth_comparison.aspx [Accessed 16 March 2014].
In this life it is essential to base your work around your beliefs and to feel passionate about what you do. Then spreading your passion for your work onto others is how you grow as an individual and as a company. Which is what I felt after reading the #1 core value.
Value Proposition is defined as "A business or marketing statement that summarizes why a consumer should buy a product or use a service”. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings." To structure a proper value proposition for a company, you must view the business model and three identifying features of the business. These three features are the Goals, Core Activities, and the Product Market Focus. The goal of a company is what it aims to accomplish. In regards to Imperial Oil ltd., their main end goal would be to create profits for their shareholders and to increase the overall value of the company. With creating more value to the company, the business can use funds to access and develop more research and advance their technology in growing the corporation. The core activities of the business are what value creating tasks will help the business run properly and how t...
The core values of a company are what drive and inspire those associated with the brand. Their purpose is a statement and reason for existence to make a difference in the world. Operating a business should be more than just earning profits. In fact, profit is not the sole purpose of a company; rather, it is creating value and improving the lives of those involved in the organization.
As mentioned above, the four pillars of value creation are in practice by Carmax since very long, which obviously got noticed and practiced by the competitors. To stand out from this competition and maintain their competitive advantage, Carmax CMO Jim Lyski, has chosen the emotional way. He said “We know our competitors have tried to replicate our key pillars, so we set out to communicate the unique Carmax experience in more emotional way.” (Scott Davis,
1. Customer Perceived Value (CPV) is essentially a consumer's evaluation of total benefits less total costs of a product or service compared against a perceived alternative (Kotler & Keller, 2012). There are a few ways for a company to take to improve CPV on a specific product. First, it may focus on expanding total customer's benefit by improving its product’s image. It may also invest into functional characteristics of the product as well as provide a better and more personalized service. Second, a firm may choose to reduce the time, energy and psychological costs bared by the consumer. Arguably one of the best received approaches would be a monetary costs' reduction technique (lower prices).
The Johnson & Johnson Corporation have withstood various problems that would have crippled other firms which can only be accounted with the cohesiveness of the corporation members and the internal structure of the corporation. Despite the corporation’s problems over the years their statement of values is an integral part of their corporation culture and how the firm continues to conduct business. “For us, the credo is our expression of managing the multiple bottom lines of products, people, planet and profits” Larsen (as cited by Hartman et al., 2014, p. 165).
In a high competitive world market and with the increasing rational buyers a company can only win by creating and delivering the best customer value than the others competitors do. To succeed, a company needs to use the concepts of value chain.
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Satellite radio is a technology that provides a radically new way to listen to radio. XM’s service makes use of advanced satellite capabilities and elaborates terrestrial receiver architecture to deliver a wide array of high quality radio programming nationwide. In early 1998, Robert Acker, director of strategic planning at XM, needs to develop a marketing strategy for this new radio service. There are several decisions that need to be made by the company in order to finalize the business plan. At fist XM needs to decide which of two business models to pursue, whether emphasis should be placed on charging customers a monthly subscription fee, or whether to rely more on earning revenue through advertising. In addressing this problem, management must consider the value that XM radio could propose for different consumer segments as compared with existing modes of radio (AM, FM) and in relation to its sole competitor in satellite radio – SIRIUS. Besides choosing a business model there is also a need to explore how best to approach and leverage manufacturer and channel partners, considering high unknown and high-risk technology. The purpose of this report is to analyze possibilities and outline possible recommendation on strategies for XM Radio. The following areas will be examined:
Sources:Strategy and the Business Landscape, by Pankaj GhemawatBritish Satellite Broadcasting versus Sky Television. Harvard Business School Case
Woodruff, R. (1997). Customer Value: The Next Source for Competitive Advantage, Journal of the Academy of Marketing Science, 25 (2), 139-153.
Anderson, J.C., Narus, JA., & van Rossum, W. (2006). Customer value propositions in business markets. Harvard Business Publishing. Retrieved from http://hbr.org/
Value has different aspects which include company values; which relates to new innovations, job growth, reducing costs, as well as long term production and so forth. Value must meet customers’ needs which they benefit from the product or service.
Explain how the company’s value-chain activities can be better linked to create value for the company.
Gome Electrical Appliances: Competing for Channel Leadership tell us a story about the legendary development of Gome Electrical Appliances. Its low price sales strategy and the countermeasures toward the price control of the color television price alliance to maintain channel leadership. This case analysis identified two major problems of market strategies Gome took in the channel leadership battle, provided two recommendations, and then analyzed the feasibility of the recommendations.