Simply copying the strategies of existing players is not enough for competitive success. Whether it's an existing market or a new market, it is important to devise methods to add more value at a lower cost—to expand the value frontier. For most firms this is an ad hoc process that can rarely be structured. Further, existing frameworks such as the value chain are very good at explaining strategy after the fact but not as good in helping managers design a strategy from the ground up. This article develops a simple framework that all firms can use to design successful strategies where the tactical details can be clearly spelled out at the design stage. This framework allows managers to see more choices in developing new business models.
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