Competitive discount = consumer surplusprovided by the strongest competitorEEConsumerPrice = 19surplus一介1ProfitPerceivedValueCostsCompetitiveMaximumCostsValue.PerceiveddiscountvaluetobecreatedusevaluecreatedusevaluecapturedValueValue capturingValue creationValue creationcapturingStrongest competitorCompany A(Company'B)COMP7880-CV-6
Value capturing Value creation Costs Value created € Perceived use value Company A Strongest competitor (Company B) Price = 19 Consumer surplus Value creation Value capturing Value Costs created € Perceived use value Competitive discount Maximum value to be captured Profit Competitive discount = consumer surplus provided by the strongest competitor COMP7880-CV-6
To achieve profitability:create and capture valueValue creationValue capturingEConsumer↑surplusPriceProducer个surplus1ValuePerceived ValueCostsCompetitiveProfitusevaluecreatedcreateddiscountCOMP7880-CV-7
Value creation Value capturing Value created € Competitive discount Value Profit created Perceived Costs use value Producer surplus Consumer surplus To achieve profitability: create and capture value Price COMP7880-CV-7