Step Three: Aligning the Customer Profile and Offering Map

Once you’ve produced a value creation customer profile and value offering map, you are ready to determine how the two overlap. You should align or adjust the two until they work together. Alignment occurs when meaningful customer wants, needs,…

Step Two: Creating a Value Offering Map

A value offering map applies your product to the target customer’s wants and needs. The value offering map ( Figure 6.4 ) has three parts: products and services, emotions, and motivations. Successful value offering maps address the most important…

Step One: Creating a Value Creation Customer Profile

This exercise helps identify the target customer’s wants and needs, emotions, and motivations by asking some questions:  What does the customer want and need to accomplish? As you answer this question, keep in mind that economists define…

Frameworks for All Organizations

Whereas the BCG grid and product life‐cycle are best applied to existing organizations, you can use the questions and frameworks below to more critically examine entrepreneurial ideas. Start‐up organizations can draw on these tools to solidify…

Frameworks for Existing Organizations

In the 1970s, the Boston Consulting Group’s (BCG) founder, Bruce Henderson, developed a two‐by‐two matrix that plots a product’s market share against the industry’s annual growth, called the BCG grid. Henderson originally created the…

Why All Companies Need Unique Value Propositions

As the Netflix example illustrates, if you want to win customers for a product or service, you first need to understand their needs and wants. Only by deeply knowing customer needs and wants can you position yourself to offer unique value. Reed…

Netflix Disruption Three: Using Unique Content to Create Value

Scrambling after the public flop, Hastings considered a new way to promote the Netflix brand. He decided to create original content, much as a television or movie studio would. In a 2016 interview with Business Insider, he admitted, “It seemed…

Netflix Disruption Two: Flubbing the Transition to Streaming

Disruption Two: Flubbing the Transition to Streaming Even as Netflix massed an unparalleled DVD library, customer preference was shifting toward watching programs delivered over the Internet, instead of through the mail. In 2006, Amazon launched…

Netflix Disruption One: Sidelining Blockbuster

In the late 1990s, most at‐home movie watchers rented VHS cassettes from a local video rental store, such as those in the large Blockbuster franchise. Video stores lacked a wide selection of DVDs because people balked at the initial $600 price…

The Netflix Story: Three Value-based Strategies

The Netflix Story: Three Value‐based Strategies Early one morning in 1997, Reed Hastings discovered a copy of the VHS tape Apollo 13 in his bedroom closet. When he returned the VHS tape to a rental store, the software entrepreneur learned…