February 2013
Beginner
148 pages
3h 39m
English
Content preview from Business Model Design and Learning
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Netflix Cancels the Value Exchange Agreement
In Chapter 5, I talked about some of the steps that TOMS is taking to sustain its value relationship with customers. As Figure 6.1 shows, the value exchange relationship is both an agreement and a relationship between firms and their customers. A strong relationship is one where both parties are satisfied with the outcome of the exchanged values, whether these outcomes are social or economic. Exchange theorists also contend that all relationships require some time and effort on the part of the parties involved.1 In fact, once established, this relationship is so important to your company that I believe that you should build it into your business model.
Figure 6.1. Value exchange relationship. ...
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