Scribd
Upload
51 views16 pages

Value Curves Methodology: Reference Books: Blue Ocean Strategy - Kim, Mauburgne

This document outlines the value curves methodology for analyzing competitive positioning. It provides examples of using value curves to analyze elements of performance for online pharmacies and Samsung's launch of LCD HDTVs in the US market. The document discusses identifying elements of performance, ranking them by value delivered to customers, and plotting value curves to compare a company's positioning to competitors. It also provides questions to help identify opportunities to differentiate value proposition.

Uploaded by

Shishir Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
51 views16 pages

Value Curves Methodology: Reference Books: Blue Ocean Strategy - Kim, Mauburgne

This document outlines the value curves methodology for analyzing competitive positioning. It provides examples of using value curves to analyze elements of performance for online pharmacies and Samsung's launch of LCD HDTVs in the US market. The document discusses identifying elements of performance, ranking them by value delivered to customers, and plotting value curves to compare a company's positioning to competitors. It also provides questions to help identify opportunities to differentiate value proposition.

Uploaded by

Shishir Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

Value Curves Methodology

Reference Books:
Blue Ocean Strategy – Kim, Mauburgne

1
Elements of Performance

 Elements in aggregate define a


product or a service
 Attributes that different customers
associate different “value” to
 Its measurable
 Its not a feature/benefit

2
Elements of Performance

 Online Pharma  Cisco Router


 Availability of drugs  Configuration
 Price Interface
 Delivery times  Replacement Service
 Availability of service  Power consumption
 Price

3
Case study: Samsung

2005: Samsung LCD HDTV launch in US

4
Value Curve:: Samsung
Sony Sharp Samsung
Elements of
High Value Performance
 Price

 Picture Quality

 Emotional Appeal

Low Value  Décor

 Sound Quality

 HDTV

 Functionality

5
Value Differentiation Identification

 Six Question test-


1. What elements can we eliminate or reduce the value
delivered?
2. For what elements should we increase the value
delivered?
3. What new elements could we introduce?
4. Do these changes make for compelling value
proposition to MIC?
5. Is our position unique?
6. Is this position sustainable?

6
Value Curve:: Samsung Revisited
Sony Sharp Samsung
Elements of
High Value Performance
 Price

 Picture Quality

 Emotional Appeal

 Décor
Low Value
 Sound Quality

 HDTV

 Functionality

7
Value Delivered

 Samsung 51/52
(LN52A650) model
introduced in US in
Feb 2006

Company Jan 06 May 06


Samsung 12.1% 26.4%
Sony 24.6%
Sharp 8.4%

TV Market share
Source: BusinessWeek Online June 22, 2006

8
Case Study: OnlinePharma.in

Develop a service where customers can order


their prescription/normal medicines through a
portal and get it delivered.

9
Onlinepharma.in
List elements of performance

10
Elements of Performance

 Drug Catalog – will I get the medicine I want?


 Time to Deliver – how long before I get it in my hands?
 Price – what is going to be my final price?
 Payment – can i pay through my insurance? (cashless,
reduced paperwork)
 Reminders – can I setup a recurring schedule
 Open – can I get a medicine in the middle of the night?
 Support – can I have access to pharmacist if I have
questions on dosage?
 Medical Advice – can I get medical advice for non critical
issues?
11
Elements - Ranked
10 1
9 2
8 3
7
6
5
4
3
2 Madhya Pradesh
1 Kerala
0 Punjab

12
Value Curve – As is
Online pharma
 “Aushadh” chain of All competitors

pharmacies in 6 High Value


metros
 “All competition” –
broadly representing
all others
 Online pharma – our
idea Low Value

Drug Variety Access Price Cashless Time to


Deliver
13
Value Curves – Tier2 cities

Online pharma
All competitors Ranked Value Elements:
General
High Value
Cashless 3%

Home Delivery 17%

Access 25%

Price 20%

Time to Deliver 5%
Low Value
Drug Variety 30%
Drug Access Price Cashless Time to
Availability Deliver
14
Value Curves – Tier1 NonCritical

Online pharma
All competitors Ranked Value Elements:
General
High Value
Cashless 25%

Home Delivery 10%

Access 25%

Price 5%

Time to Deliver 20%


Low Value
Drug Variety 15%
Drug Access Price Cashless Time to
Availability Deliver
15
Which of the two models will you build?

Whichever makes more profit!

16

You might also like