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January 18, 2024, vizologi

See It in Action: An Example of a Value Curve

Value curves are a great way to see how companies compare in a market. They show what customers care about and how different companies meet those needs. In this article, we’ll look at an example to see how businesses can use value curves to their advantage in the business world.

What’s a Value Curve?

A company can create its own Value Curve. They can do this by analyzing the competition and identifying the key factors that the industry competes on. This helps them understand their market position and find improvement areas. Unlike other strategies, the Blue Ocean strategy focuses on creating new market spaces instead of competing in existing ones. This approach allows companies to innovate, capture untapped demand, and expand their customer base.

Tools like Porter’s Five Forces, SWOT analysis, and Value Chain analysis can help analyze a company’s strategy. These tools provide insights into the organization’s competitive advantage and value-creation opportunities. Understanding the Value Curve and using the correct analysis tools helps companies develop effective strategies for differentiation and growth.

Steps to Make Your Own Value Curve

Pick Out What Makes Your Stuff Special

Products and services create value for customers in different ways. For instance, a smartphone may stand out in the market due to unique features like long battery life and a durable design. Moreover, a company can implement a Blue Ocean strategy by launching a product in an untapped market or pricing products differently than established competitors. It’s essential to provide specific examples related to each question without using any prohibited words.

The Four Big Moves from the Value Curve Model

The Value Curve Model has four big moves: reducing, creating, raising, and eliminating aspects of a product or service. These moves help companies offer value to customers and create new market spaces, part of the Blue Ocean strategy.

Businesses can use this model to identify what matters most to customers and focus on innovating new products or services that provide more value in those areas.

Tools like customer surveys, market research, and competitor analysis can help analyze and modify a company’s value curve strategy. These tools can identify areas for improvement and guide strategies to differentiate products and compete in new markets.

Understanding the Value Curve Model helps businesses ensure their projects and programs align with the right strategies to offer value and stay competitive in the market.

Dive into the ‘Blue Ocean’

What Makes the ‘Blue Ocean’ Different?

Traditional competitive strategies compete in existing market spaces and battle for market share. On the other hand, the ‘Blue Ocean’ strategy encourages companies to explore new market spaces and create new demand by innovating and differentiating their offerings.

This allows businesses to move away from direct competition and pursue uncontested market space. This approach encourages creative thinking about strategic planning and market positioning, promoting investment in innovation and differentiation rather than relying solely on price competition.

For example, companies like Apple strategically position their products in the market by analyzing the value curve. They create new demand by investing in user experience and maintaining competitive prices. The focus shifts from beating the competition to making the competition irrelevant by offering a unique value proposition.

This different way of thinking about competition and market positioning allows companies to create and capture new demand, making the ‘Blue Ocean’ strategy distinct from traditional competitive strategies.

Tools to Analyze Your Strategy

The Map of Your Plan – Strategy Canvas

A Value Curve is a diagram that shows where value is created in a company’s products or services. It helps visualize how a company can stand out from competitors and provide value to customers.

To make your Value Curve:

  1. Identify the factors the industry competes on, like price, quality, speed, and user experience.
  2. Analyze these factors concerning your products or services.

The Value Curve Model involves four big moves:

  1. Reducing.
  2. Raising.
  3. Eliminating.
  4. Creating

These are key strategies to set your products or services apart from competitors.

For example, Apple differentiated the iPad by focusing on user experience and keeping the price low, allowing it to compete in new markets.

Understanding the Value Curve model helps in:

  • Analyzing the competitive landscape
  • Setting products apart from competitors
  • Making strategic decisions to create new market spaces.

Make, Raise, Cut, Eliminate – Four Actions to Change

The Value Curve Model involves four essential actions: make, raise, cut, and eliminate. These moves help create new market spaces and differentiate products from competitors.

To create your own value curve, you should analyze the competitive landscape and the factors your industry competes on. This means understanding where value is made in your products or services and how you can innovate to provide value to customers. Tools such as the Business Model Canvas and SWOT analysis can help you analyze your strategy and identify areas for improvement.

Companies like Apple have successfully differentiated their products in the market using the Value Curve by investing in user experience and keeping the price low.

Understanding the Value Curve is essential for all projects and programs within organizations to ensure the right strategies are employed and to compete effectively in new markets.

Look at Cloudera’s Cool New Curve

Cloudera website

A Value Curve is a diagram that shows where value is created in an organization’s products or services. It helps to visualize how a company can create new market spaces and provide value to customers compared to competitors. The ‘Blue Ocean’ strategy focuses on developing new demand instead of competing for existing customers, setting it apart from traditional competitive strategy.

By understanding their Value Curve, an organization can create new market spaces rather than directly competing with industry rivals. Analyzing each company’s offerings on the Value Curve helps evaluate their uniqueness from competitors, considering factors like price, customer experience, functionality, and product features.

Understanding where their products and services fall on the value curve allows companies to develop strategies that emphasize their unique selling points and effectively compete in different markets.

Vizologi is a revolutionary AI-generated business strategy tool that offers its users access to advanced features to create and refine start-up ideas quickly.
It generates limitless business ideas, gains insights on markets and competitors, and automates business plan creation.


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Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.


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