Lecture Unit 7: Industry analysis (2/2)

Question 1

What are the 5 different player of the value net model?

Answer 1

Customers:
- The people who buy your product or service

Suppliers:
- provide your organization with the resources you need to produce a saleable product.

• (Keep in mind that suppliers can be outside organizations, or your own employees.)

Competitors:
- take a share of your target market by offering a similar product or service

company the individual company itself

Complementors:
- These are other players who provide a product that can be linked to your own

• to make both offerings more attractive to your customers.

Question 2

When is a player a complementor ? (Value neet model)

Answer 2

• if customers value your product more when they have the other player’s product than when they have your product alone

Question 3

Value net model:
in the value net model (coopetition) interactions can be positive or negative

Name examples of poitive interations?

Answer 3

• Efforts by competitors to set technology standards that facilitate industry growth
• Efforts by competitors to promote favorable regulations and legislation
• Cooperation among firms and their suppliers to improve product quality to boost demand
• Cooperation among firms and their suppliers to improve productive efficiency

Question 4

When is a player a Competitor? (Value neet model)

Answer 4

• if customers value your product less when they have the other player’s product than when they have your product alone

Question 5

What is the value net of this value net model?

Answer 5

• is a high level view of the key relationships that drive any company’s ability to succeed sustainably

Question 6

What are the key principles to succeed in the Value Net framework?

Answer 6

• adding value over time
• understanding and creating the rules of engagement
• awareness of different perspective

–> all come into play

Question 7

What is the PARTS appraoch? What are the 5 dimensions to develop business strategies?

Answer 7

• Players
• Added Value
• Rules
• Tactics
• Scope

Question 8

What is meant with players. added value and rules in the PARTS approach? of the net value model?

Answer 8

Players: First step is to use the Value Net Model to identify the players that influence your business

Added value: measures what each person, in each role, brings to the table

Rules: Every industry has certain established and unwritten “rules” that must be followed.

Question 9

What is meant with tactics and scope in the PARTS approach? of the net value model?

Answer 9

Tactics: how you shape and manage the perception of your organization by each player

• Each player in the Value Net Model perceives your organization in a certain way
• How you shape and manage these perceptions is the foundation of your business tactics

Question 10

What is the concept of “Coopetition” in the value net model?

Answer 10

Means that Interactions between firms can be positive or negative.

Question 11

What does the Value net model illlustrate?

Answer 11

it illustrates the interdependencies between yourself and the four other types of player in your business:

Question 12

Can players occupy more than one role within the Value Net framework?

Answer 12

Yes, some players might occupy more than one role within the Value Net framework.

Question 13

According to the Value Net, what is more critical than economic profit?

Answer 13

Sustainability is more critical than economic profit.

Question 14

What is meant with tactics and scope in the PARTS approach? of the net value model?

Answer 14

Scope: identify links to other markets and whether there are benefits to increase the scope of the markets (boundaries)

• The market has boundaries which can be extended by linking to other markets
• Identify these links and whether there are benefits to increasing scope