Question How would you compare the 'value capture model' with Porter's five forces when making an industry analysis? What's the benefits and drawback of each?
Question How would you compare the 'value capture model' with Porter's five forces when making an industry analysis? What's the benefits and drawback of each?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
100%
I want to know the answer to the question and how to solve it
![THINKING DIFFERENTLY
From five forces to one
A new competition view focuses on how value is created and captured.
A new 'value capture model' based on game theory player's competition force then depends on how many
aspires to replace Porter's competitive forces frame-
work. 25 The power of his five competitive forces
defines the opportunities of a firm. The new model
rather emphasises how the firm's opportunities
depend on how the firm, suppliers and buyers create
value together. They then compete for a share of that suggests that value creation and value appropriation
value based on a single competition force that each
player has.
Compared to Porter's framework, the emphasis in
others it could create value with. For example, if a firm
has many alternative suppliers and buyers to create
value with, its competition force would go up as it can
threaten to make transactions with someone else and
thus bargain up its share of the value pie this way. This
are linked in this model. The more value the firm can
create with various suppliers and buyers the larger por-
tion of this value it can capture.
this model is more on how value is created between
parties. The firm and its suppliers and buyers comprise
a value network of transactions that create value to
be shared among them. They then compete for their
share based on the single competition force each has:
suppliers compete for firms, and vice versa; firms
compete for buyers and vice versa. A firm, for exam-
ple, wants to make transactions with certain suppliers
and customers to create value, but also to capture as
much of that value as possible. The strength of each
Question
How would you compare the 'value capture
model' with Porter's five forces when making
an industry analysis? What's the benefits and
drawback of each?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2783f60-c271-43cb-9247-1e8f2403d07d%2Fd5754703-6f53-4621-9217-da3aee1c7266%2Fqc4jsk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:THINKING DIFFERENTLY
From five forces to one
A new competition view focuses on how value is created and captured.
A new 'value capture model' based on game theory player's competition force then depends on how many
aspires to replace Porter's competitive forces frame-
work. 25 The power of his five competitive forces
defines the opportunities of a firm. The new model
rather emphasises how the firm's opportunities
depend on how the firm, suppliers and buyers create
value together. They then compete for a share of that suggests that value creation and value appropriation
value based on a single competition force that each
player has.
Compared to Porter's framework, the emphasis in
others it could create value with. For example, if a firm
has many alternative suppliers and buyers to create
value with, its competition force would go up as it can
threaten to make transactions with someone else and
thus bargain up its share of the value pie this way. This
are linked in this model. The more value the firm can
create with various suppliers and buyers the larger por-
tion of this value it can capture.
this model is more on how value is created between
parties. The firm and its suppliers and buyers comprise
a value network of transactions that create value to
be shared among them. They then compete for their
share based on the single competition force each has:
suppliers compete for firms, and vice versa; firms
compete for buyers and vice versa. A firm, for exam-
ple, wants to make transactions with certain suppliers
and customers to create value, but also to capture as
much of that value as possible. The strength of each
Question
How would you compare the 'value capture
model' with Porter's five forces when making
an industry analysis? What's the benefits and
drawback of each?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Principles Of Marketing](https://www.bartleby.com/isbn_cover_images/9780134492513/9780134492513_smallCoverImage.gif)
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
![Marketing](https://www.bartleby.com/isbn_cover_images/9781259924040/9781259924040_smallCoverImage.gif)
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
![Foundations of Business (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337386920/9781337386920_smallCoverImage.gif)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
![Principles Of Marketing](https://www.bartleby.com/isbn_cover_images/9780134492513/9780134492513_smallCoverImage.gif)
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
![Marketing](https://www.bartleby.com/isbn_cover_images/9781259924040/9781259924040_smallCoverImage.gif)
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
![Foundations of Business (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337386920/9781337386920_smallCoverImage.gif)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
![Marketing: An Introduction (13th Edition)](https://www.bartleby.com/isbn_cover_images/9780134149530/9780134149530_smallCoverImage.gif)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
![MKTG 12:STUDENT ED.-TEXT](https://www.bartleby.com/isbn_cover_images/9781337407595/9781337407595_smallCoverImage.gif)
![Contemporary Marketing](https://www.bartleby.com/isbn_cover_images/9780357033777/9780357033777_smallCoverImage.jpg)
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning