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Overview of the main concepts of Customer Value Creation.
The OIA-CVC Customer Value Creation model
Examples of Customer Value Creation
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A Business Model to succeed your globalization :
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Customer Value

The second pillar of a successful globalization strategy: Customer Value

  • The idea of customer value creation is not recent but it has quite simply become indispensable due to the fact that competition is now global as explained above.

  • If a western company cannot compete with low cost countries as far as costs are concerned (and there are quite a few of them in this situation), then they have no choice but to adopt a customer value strategy.

  • There are various customer value strategies :

    (1) The company can manufacture goods and/or services that low cost countries cannot manufacture due to the advanced technology involved. But many low cost countries ( China in particular) catching up with technology

    (2) It is also important to develop products/services whose cost price (and hence their selling price) is not the main deciding factor.

    (3) One can also develop brands with such a strong image that the competition’s image is left far behind. This is true of luxury goods. But they are not the only ones. Some big French and Italian brands have not been affected at all by the global competition.

    (4) You can also simply develop “regional” activities which are not sensitive to long distance competition (for example transportation cost protection). In that case you will limit your competition to local competition. But not many products / services are in this category for ever.
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