RESEARCH NOTE: CAPTURING VALUE ACROSS THE VALUE SYSTEM

While construction of the value system involves analysis, implementation is all about action. An entrepreneur can strategize how value can be realised through the Value System that involves seven levels:
1. Generic Strategies
Michael Porter had stated that the Generic Value Proposition offered by any Value Chain is based on the Generic Strategies of Low Cost or Differentiation.
2. Functional (Efficient) System
These chains deliver low Cost, achieved through efficiencies in the processes of the chain by eliminating waste.
3. Responsive (Innovative) System
Responsive Systems are oriented to offering differentiated value. This means they offer something above the basic function and hope to attract a premium for the same.
4. Creating a Competitive Value System
While the above understanding enriches the decision options for an entrepreneur, they are primarily interested in competitive systems superior to the competition.
5. Strength and Weakness Analysis of an Organisation in the Value System Chain
Get to know the specific aspects of product segments, and competing organisations that add up to create the Industry Value Curve.
6. Capturing Value Across the Value System
It is clear that no single organization can give the Value, as desired by the ultimate customer, exclusively by itself.
7. Continuous refinement and enhancement of Value Creation Capability
Competitive advantage can be sustained only by continuously refining and enhancing value creation capability.
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