Better, Simpler Strategy

19

Connecting the Dots

To achieve exceptional performance, strategists employ two levers: willingness-to-pay (WTP) and willingness-to-sell (WTS). In the preceding chapters, we discussed the principal mechanisms that either raise WTP or lower WTS. We also saw that value maps help us identify opportunities for differentiation in WTP or WTS. Focusing on a single lever (i.e., WTP or WTS) is useful for describing mechanisms that create value.

In practice, however, it is unlikely that a strategic move will influence only one of the two levers. Most real-world strategic initiatives affect both ends of the value stick, so it is essential that you think through all the changes—WTP, price, cost, and WTS—before you embark on a new strategic course. This ...