Remix Strategy

Chapter 3

First Law: Identify Potential Joint Value

ALL BUSINESS STRATEGIES AIM TO CREATE VALUE. YOU can think of this in several ways. A popular meaning for value creation centers on improving the product or service that customers receive. But this kind of value creation is not an end in itself, at least not for profit-making entities. Ultimately, every strategy aims to create value for the firm. Often, you can indeed create value for the firm by first raising the value to customers. This strategy can increase demand and your customers’ willingness to pay. In addition, however, you can also create value for your firm by lowering the costs of delivering the product or service and pocketing the savings. Either strategy, or both of them, will ...