The best of Value Networking for You

Marketing is a strategy. The role of the CEO in the intensive development of the company and the introduction of innovations

Value creation network - how to deliver value to a customer?

In the third kind of value, network value, or the answer to the question of how to deliver the value of an offer to a target client, Value creation network systematically rethought each of its components in order to reduce prices to its advantage. This airline saves from 20 to 25% when distributing its product in comparison with airlines providing a full range of services. This state of affairs persists due to the fact that easyJet refused the services of ticket agents, actively sells through the Internet, does not participate in ticket booking systems such as Saber, and does not use paper tickets. Value creation network spends 10% of its budget on marketing, but gets much more return due to its advertising, which catches the eye, attracts attention and opens up new opportunities for customers. In turn, The press is interested in this company in numerous articles, creating free advertising for it. In addition, with a flexible management system, Value creation network can achieve maximum revenue from every flight, skillfully balancing between supply and demand. When the need for travel increases, air ticket prices go up and vice versa.

How do market companies achieve benefits?

This chapter, based on myvaluenetwork review an in-depth study of the 25 companies that shape the market, describes not only the peculiarities of their competition, but also strategies for changing marketing work. It describes in detail the differences between different aspects of the marketing strategies of companies that form the market and organizations doing business according to traditional schemes.

While transformations in network components related to marketing and product distribution are very important, cost reduction is achieved mainly by simplifying and speeding up the company's operations. In Value creation network, operations are optimized so that costs are low, and each aircraft is as busy as possible and brings the greatest return. The airline uses only the Boeing 737, and this reduces the process of selecting spare parts, as well as the cost of training pilots and technical staff. It also makes it easy to replace one aircraft with another and offers advantages when negotiating with aircraft vendors. The refusal of the kitchen on board the aircraft and the business class cabin allows you to accommodate 149 passengers, while competing airlines have only 109 passenger seats. Due to the absence of fixed seats, boarding the aircraft is faster, thus the airline follows the schedule more precisely and increases the workload of the aircraft.

The ability to create additional value

Other sales channels rather exploit the value of the product. Retail and wholesale to some extent parasitize on the value of the product, it is their inherent quality. That is why marketers have to tackle global challenges of giving additional value to a product, finding competitive properties, regulating the growth of this value at the expense of the brand, packaging, advertising budget, etc.