COMP7880: E-Business StrategiesCreating&capturingvalueDickson K.W. ChiuPhD,SMIEEE,SMACM,LifeMHKCSJelassi & Enders: Chapter 8
1 Dickson K.W. Chiu PhD, SMIEEE, SMACM, Life MHKCS Jelassi & Enders: Chapter 8 COMP7880: E-Business Strategies Creating & capturing value
OurRoadmapMobilee-commercestrategyE-businessstrategyStrategicStrategyStrategy formulationanalysisimplementationExternalanalysisInternalStrategyorganisationoptionsOpportunities/threatsSustainingExploringStrengths/Interaction withnew marketcompetitiveImplementationweaknessessuppliersadvantagespacesInternalanalysisCreating andInteraction withcapturingusers/customersvalueCOMP7880-CV-2
Strategy options External analysis Internal analysis Sustaining competitive advantage Internal organisation Implementation Exploring new market spaces Interaction with suppliers Interaction with users/customers Creating and capturing value Strategic analysis Strategy implementation E-business strategy Mobile e-commerce strategy Opportunities/ threats Strengths/ weaknesses Our Roadmap Strategy formulation COMP7880-CV-2
Value is created if the perceived usevalue exceeds costsValuecreationE11ValuePerceivedCostscreatedusevalueCOMP7880-CV-3
Value creation Value created € Costs Perceived use value Value is created if the perceived use value exceeds costs COMP7880-CV-3
The price indicates how the valuecreated is distributedValuecreationValue capturingEConsumersurplus1Price1Value captured(producer'surplus1PerceivedValueCostscreatedusevalueCOMP7880-CV-4
Value captured (producer surplus) Price Consumer surplus Value creation Value capturing Value Costs created € Perceived use value The price indicates how the value created is distributed COMP7880-CV-4
Producers completely capture valuecreated in a monopolistic environmentValue capturingValue creationEPrice=Willingnessto1pay1ValueValuePerceivedProducerCostscreatedusevaluecreatedsurplusCOMP7880-CV-5
Value creation Value capturing Value created € Producer surplus Value created Price = Willingness to pay Costs Perceived use value = Producers completely capture value created in a monopolistic environment COMP7880-CV-5