Chapter 2

Seven competitive strategies

Our seven strategies are developed from our understanding of what customers value and how they choose what products to buy.5 The term value tends to be used rather loosely. We make a distinction between two forms of value: firstly, use value which is the usefulness or utility of a product or a service, and secondly, exchange value which is the price that somebody pays for this product or service. Use value is an entirely subjective judgement as seen by the person who buys the product, and exchange value is what they pay to acquire the product. We are interested in the creation of use values in ways that lead to the capture of exchange value. Although we focus our attention on value creation within ...

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