HW: Assignment

Value Leadership Analysis

Create a value leadership analysis of a strategic transaction that changed a market. Set up the problem using the enclosed charts. Then, in one short paragraph describe why this transaction changed the market.

How to conduct a value leadership analysis

• Create two charts with five columns each (this will help you answer Druckers questions)
  14. Product
  15. Actor A (Customer)
  16. Actor As value offered (i.e. $ or loyalty)
  17. Actor B (Marketer)
  18. Actor Bs value offered (i.e. utility of product use)

14. The first chart shows the typical transaction
15. The second chart shows the transaction innovation that changed the market (or will change the market in the future)

14. Then, in a few sentences, describe why the exchange changed the market

Value Leadership Framework

Alternative exchanges

Example: Manager Creating a Means-Ends Chain

Transaction #1: Typical competitor

Product or Service	Actor A	Aa value offered	Actor B	Ab value offered
			Competitor

Transaction #2: What is my plan versus competitor?

Product or Service	Actor A	Aa value offered	Actor B	Ab value offered
What is my product?	Who is my customer?	What is the value I wish to achieve?	Me	What does my customer value? Show how market will change as you beat competitor

Example: Value Leadership Framework

Alternative exchanges

For Cosmetic Surgery (ca. 2010)

Transaction #1: A deal with a typical cosmetic surgeon

Product or Service	Actor A	Aa value offered	Actor B	Ab value offered
Cosmetic surgery	Celebrities	$	Typical Cosmetic Surgeon	The utility of cosmetic surgery

Transaction #2: A deal with Dr. Youn the celebrity cosmetic surgeon

Product or Service	Actor A	Aa value offered	Actor B	Ab value offered
Cosmetic surgery	Celebrities	$ Loyalty	Dr. Youn	The utility of up-to-date anti-aging techniques (volumetric facelift or facial reshaping)

Dr. Youn changed the market for cosmetic surgery by offering advanced volumetric facial shaping to Hollywood stars. These techniques changed the market for cosmetic surgery for Hollywood stars by creating procedures that are difficult for others to detect. This technique allowed Dr. Youn to develop a lucrative practice among Hollywood stars.

Value Leadership Framework

Alternative exchanges

Transaction #1: Typical competitor

Product or Service	Actor A	Aa value offered	Actor B	Ab value offered

Transaction #2: What is my plan versus competitor?

Product or Service	Actor A	Aa value offered	Actor B	Ab value offered