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4.4 - Coggle Diagram

- - - - Introduction
      - Growth
      - Maturity
      - Decline
- - - - What is offered to customers in what segment?
      - Customers needs and wants (problems)
      - Target customers and segments
    - - Why does the model generate a margin?
      - Revenue stream from customers and payments
      - Cost structure and drivers
    - - How is the value proposition structured?
      - Composition and selection of resources and activities
      - Linkages between resources and system of activities in the value chain
      - Identifies what participants perform what activities
  - - - e.g. printer and ink, printer is sold at cost price while ink is sold with a high profit margin
      - e.g. industrial goods, emphasis on expensive service
    - - Product or service is offered for free, the customer can unlock extra features for a fixed fee or a subsiription
    - - Platform
        
        Technology Platform
        
        Xbox, PlayStation etc
        
        Uber, AirBNB, Amazon
        
        Traditional Platform
        
        Newspapers, Magazines
        
        Platforms facilitate transactions between users
      - Network Effects
- - - - Input Costs
        
        Lower labor, raw material etc cost
      - Economies of Scale
        
        Spread fixed cost over high output
      - Experience
        
        Becoming more efficient
        
        Do activities more cheaply over time (Experience curve)
      - Product or Process Design
      - Cost-based strategy comes also from having the lowest price in the market but still caring for quality (e.g. Ikea)
    - - Product/service Attributes
        
        Having unique features putting them in a unique position in the market
        
        Unique product/service with special attributes valued by the customers who are willing to pay a premium for it.
      - Customer Relationships
      - Complements
      - Differentiation strategy requires that the increase in production cost must not exceed the gains in profits
      - Brand Image
      - Safety and reliability
      - Advanced technology
    - - Serving a distinctive Segment
        
        Strategic groups
      - Distinct segment value chain
      - Viability of segment
      - Cost Focus
        e.g. Tesco
      - Differentiation Focus
        e.g. Lenovo
    - - Organisational Separation
        
        Creating separate SBU to manage different generic strategy
      - Technological or managerial innovations
        
        Allow decreases in cost and increases in quality
      - Competitive failures