From Value Chain to Value Constellation:Designing Interactive Strategy

Group 5

Mu Xiwei

Kanza Mukhtar

Gao Jie

Wang Yiqing

Strategy is the art of creating value.

Value Chain

Inbound Logistics

Marketing Distribution ServiceMarketing

MarketingMarketing

MarketingMarketing

MarketingMarketing

MarketingMarketing

Production

Value Value Value Value

Value Chain

Value Constellation

TechnologyTechnology

TechnologyTechnology

TechnologyGlobalization

Inbound Logistics

Service

Distribution

Production

Marketing

CompanySupplier Customer

Value

Value

• With customers: customers not only consume value but also create value.

• With suppliers: IKEA get low cost but high quality product by purchasing high volume and dispersed & providing technical assistant to the providers

• Strategy: understand how customers can create their own value and to create a business system that allow them to do it better.

Value Constellation

• Master the design and management of interconnected, co-productive offerings.

• Mobilize value creation in their customers and partners by reconfiguring roles, relationships and structures.

• Reinvent value in a dialogue between competency and customers.

By Richard and Rafael goal is to mobilize customers to create their own value from offerings by company while company come up with these offerings by being the center of constellation of goods and services and by Building better fit netween relationships and knowledge.

A Method and System for Placing and processing a Purchase Order Via a Communications Network.

Amazon is a huge global brand. It is recognizable for two main reasons. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. It was an early exploiter of online technologies for e-commerce, which made it one of the first online retailers. It has built on nits early successes with books, and now has product categories that include electronics, toys and games and more.

Amazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (£29.9m) from $76m in the same period in 2004. Sales jumped 26% to $1.75bn.

http://www.marketingteacher.com/SWOT/amazon_swot.htm

ACTING AS A CENTER OF A CONSTELLATION OF SERVICES, GOODS AND DESIGNS

Cost-leadership

Customer differentiation Amazon.com provided current and prospective customers with differentiation though design, quality or convenience and Amazon.com always selects a differentiator that is different among the competitor.

Focus strategies Amazon.com fouses on outstanding customer service as a niche but not the whole market because each niche has its own demand and requirement. (International stores because of tongue, currency, shipping)

STRATEGIES

http://www.marketingteacher.com/SWOT/amazon_swot.htm

VALUES

• Customer satisfaction

• Operational frugality.

http://www.marketingteacher.com/SWOT/amazon_swot.htm

The company is now increasingly cashing in on its credentials as an online retail pioneer by selling its expertise to major store groups. For example, British retailer Marks and Spencer announced a joint venture with Amazon to sell its products and service online. Other recent collaborations have been with Target, Toys-R-Us and the NBA. Amazon's new Luxembourg-based division aims to provide tailored services to retailers as a technology service provider in Europe.

There are also opportunities for Amazon to build collaborations with the public sector. For example the company announced a deal with the British Library, London, in 2004. The benefit is that customers can search for rare or antique books. The library's catalogue of published works is now on the Amazon website, meaning it has details of more than 2.5m books on the site.

In 2004 Amazon moved into the Chinese market, by buying china's biggest online retailer, Joyo.com . The deal was reported to be worth around $75m (£40m). Joyo.com has many similarities to its new owner, in that it retails books, movies, toys, and music at discounted prices.

INCENTIVES: global market, 30 million customers, brand names.

http://www.marketingteacher.com/SWOT/amazon_swot.htm

THE GOAL IS NOT TO CREATE VALUE FOR CUSTOMERS BUT TO MOBILIZE CUSTOMERS TO CREATE THEIR OWN VALUE FROM THE COMPANIES VARIOUS OFFERINGS

• Retailers vs customers• Wish list• Gifts• One click shopping• Unique shopping experience

NEW LOGIC OF VALUE

Amazon.com is planning to allow sellers of used goods on its site to branch into new businesses, an analyst said Tuesday, in a move that could put pressure on eBay.

Currently, people and businesses can sell used goods on the site only if Amazon itself offers the same items new. For instance, if Amazon sells a CD by the rock group U2, then it allows a seller to offer a used copy of the CD. This way, Amazon doesn't need to create new product descriptions or displays.

Under the new plan, sellers would be able to create their own product descriptions and displays.

http://www.news.com/2100-1017-913659.html

Thank you for listening!