1. Value creation and value proposition
Dr Jan Alpenberg, PHD, Econ Dr
Tyndale University
Toronto, ON
Jan Alpenberg, Youth Unlimited, Blueprint 2012

2. Competitive Advantage
A firm’s profitability is greater than the average profitability for all firms in its industry
Sustained competitive advantage
A firm maintains competitive advantage for a number of years
Profitability = Profit/Capital
Jan Alpenberg, Youth Unlimited, Blueprint 2012

3. Value Creation per Unit
Jan Alpenberg, Youth Unlimited, Blueprint 2012

4. Main factors that creates value and competitive advantage:
Superior quality (both percieved and technical)
Superior innovation
Superior effeciency (internal and external)
Internal – output/input – ”to do the things right”
External – output/goals – ”to do the right thing”
Superior customer responsiveness (leadtime, satisfaction, loyalty, unique products)
To offer the customer what they want, when they want it, in the right quantity, to the right quality, to the right price)
Jan Alpenberg, Youth Unlimited, Blueprint 2012

5. Value proposition
How is your company going to create value for the customer?
What are the components/attributes that creates the value?
List your components…
What are the things the customer is buying?
What do the customer get when they buy the product?
Functions?
Benefits?
Savings?
What is the deal?
Jan Alpenberg, Youth Unlimited, Blueprint 2012

6. Value Creation and Pricing Options
Jan Alpenberg, Youth Unlimited, Blueprint 2012

7. Comparing Toyota and General Motors
Jan Alpenberg, Youth Unlimited, Blueprint 2012

8. Differentiation and Cost Structure: Roots of Competitive Advantage
Jan Alpenberg, Youth Unlimited, Blueprint 2012

9. Distinctive Competences and Competitive Advantage
Distinctive competencies
Firm-specific strengths that allow a company to gain competitive advantage by differentiating its products and/or achieving lower costs than its rivals
Arise from resources and capabilities
Jan Alpenberg, Youth Unlimited, Blueprint 2012

10. The Role of Resources Resources
Capital or financial, physical, social or human, technological, and organizational factor endowments
Tangible and intangible
A firm-specific and difficult to imitate resource is likely to lead to distinctive competency
A valuable resource that creates strong demand for a firm’s products may lead to distinctive competency
Jan Alpenberg, Youth Unlimited, Blueprint 2012

11. The Role of Capabilities
A company’s skills at coordinating and using its resources
Capabilities are the product of organizational structure, processes, and control systems
Jan Alpenberg, Youth Unlimited, Blueprint 2012