Value-Based strategy

Question 1

What determines how much value each player will appropriate?

Answer 1

Bargaining between the players determines the division of value

Question 2

How do you find the added value of a player

Answer 2

(Value Created by All
Players) - (Value Created by All
Other Players Except
the Player in Question)

Question 3

What are the four value-based strategies

Answer 3

• raising willigness to pay
• lower the willingness to pay of customers for other firm’s products
• lower the opportunity cost of your suppliers
• Raise the opportunity cost of other firms’ suppliers