Competing on value creation
Thursday, September 10th, 2009While competing on price, reconfiguring your cost structure is the most obvious road to success.
However, while competing with Free, lowering your costs might give you money to engage in other activities but it won’t give you an advantage in the marketplace.
The result of this is that many companies have stopped focusing on minimising costs and turned to maximising end user value creation. This doesn’t just apply to free, but to all industries where price no longer is as important as it used to be.
Right now I’m trying to figure out how this affects our perception of value, what happens when there is neither price nor cost?
