Value Innovation is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. The concept of Value Innovation is developed by W. Chan Kim and Renée Mauborgne and is the cornerstone of market-creating strategy. Because value to buyers comes from the offering’s utility minus its price, and because value to the company is generated from the offering’s price minus its cost, value innovation is achieved only when the whole system of utility, price, and cost is aligned.
|Cost savings are made by eliminating and reducing the factors an industry competes on.|
|Buyer value is lifted by raising and creating elements the industry has never offered.|
© Chan Kim & Renée Mauborgne. All rights reserved.
Break the value-cost trade-off by answering the following questions:
For more articles on this tool,
SEARCH THE eLIBRARY
Chan Kim and Renée Mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. In their 2017 New York Times bestselling book, Blue Ocean Shift, Kim and Mauborgne share how to put these practical market-creating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process.
Learn the tools and frameworks to execute successful blue ocean shifts through our online Blue Ocean Practical Introduction™ course. This online course is designed to show you how to create your blue ocean and make the competition irrelevant.
Are you struggling to :
Then the Blue Ocean Practical Introduction course is right for you. It will show you what it takes to shift from bloody competition to new markets and the tools you need to get you there.