Normann, 2001 Ch. 3 - Some Consequences of Dematerialization - quite good "deck"

Question 1

How should you think when setting a price?

Answer 1

Sellers today do not only look at the marginal cost and set the price by that. Today sellers might invest in future value, and therefore gives today’s product away for free. (Software companies, etc.).

Question 2

How are buyers looking at the price?

Answer 2

Buyers will look at how much the product or service they acquired will help them. And the discounted net additional revenue stream could be the price for the product or service - called leverage value. The leverage value could be the price, but competition sets the price. Because someone might sell it cheaper, want to sell it cheaper, illegally download it/copy it.

Question 3

What geographical regions are the most important today?

Answer 3

Cities and regions are seen with as important, due to their natural value-creating networks. More so than the traditional nation-state.

Question 4

The reconfiguration vacuum by the dematerialization / liquefaction/ unbundling process that inevitable takes please creates opportunities for rebundling the virtual and the physical domains in new and unique ways.

Answer 4

The reconfiguration vacuum by the dematerialization / liquefaction/ unbundling process that inevitable takes please creates opportunities for rebundling the virtual and the physical domains in new and unique ways.

Question 5

What is the vaccum principle?

Answer 5

Vacuum principle: if your company doesn’t use the opportunity to fill the value space vacuum, somebody else will; Filling the vacuum: Being a prime mover

Question 6

Summary:

Answer 6

• Value space vacuum is opened (due to dematerialization – Unbundleability – asset liquidity – Rebundleability – density, which changes the way value can be created and leads to greater opportunitiesto create wealth and certainly value), vacuum will be filled (by exploiting opportunities) from who will reconfigure value creation to fill it (from Prime Movers!)
• The vacuum principle – i.e. that emerging opportunities will be utilized by somebody – results in a reorganization of value creation, as activities are reshuffled into new time slots, between places, and between economic actors, resulting in new configurations and actor constellations