Three value-focused strategic questions for continuously updating your business model

Abstract

Purpose

The article describes how a well-functioning, competent system of self-evaluation of customer value creation and delivery can be an essential part of a corporate initiative to reach or sustain the winner state.”

Design/methodology/approach

The true value the firm’s customers are obtaining from interactions with the firm can be assessed by obtaining candid answers to the following three strategic value-focused business model questions: 10;(1)9;How do you make sure you are offering the benefits your customers really appreciate most? 10;(2)9;What group of customers is the primary focus of your efforts? 10;(3)9;How do you help your customers fully appreciate the delivery of the benefits offered? 10;These three questions were derived from an in-depth investigation of the business models of real-world firms that succeeded in moving to and remaining in the winner state, an ongoing longitudinal study undertaken by the authors’ team in North America, Southeast Asia and Europe.

Findings

Based on the authors’ research, companies with sustainable winning business models institutionalize the processes of systematic, ongoing collection of the information about customer value, integrating it into the strategic decision making processes.

Practical implications

To be effective, according to our research, the analysis needs to consider value proposition (what is promised), value targeting (who is the primary recipient) and value delivery (how the promise is fulfilled) separately, which most companies don’t do.

Originality/value

The article offers top executives, marketing executives and board members process for updating and adjusting the business model so that it continues to produce superior revenue, operating profit and ongoing customer and shareholder satisfaction.

Citation

Biloshapka, V. and Osiyevskyy, O. (2019), "Three value-focused strategic questions for continuously updating your business model", Strategy & Leadership, Vol. 46 No. 3, pp. 45-51. https://doi.org/10.1108/SL-02-2018-0016