There are three general types of value migrations:
There are three stages to value migration:
Three types
Three stages
The value chain is the sum of all activities that add utility to the customer. Parts of the value chain will be internal to the company, while others will come from suppliers, distributors, and other channel partners.
A linkage occurs whenever one activity affects other activities in the chain. To optimize a value chain, the linkages must be well coordinated.
The calculation of value migration is more difficult than it would at first seem. Value is perceived by customers and, as such, is subjective. This is very difficult to measure so relative market value of the firm is used as a proxy. Relative market value (defined as capitalization divided by annual revenue) is used as an indication of the firms success at creating value.
The concept of value migration was first proposed by A. J. Slywotzky in his classic 1996 book Value Migration, How to think several moves ahead of the competition, published by Harvard Business School Press.
See also:
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