Price/Value Diagram

What is it?

When is it useful?

Use it to quickly visualise different positionings within an industry

An Example?

New entrants have to come in at a superior price/value combination (to the right of the line)

The line of stable share shifts right

The incumbent has a choice:

Stay with current price/value and lose market ahare

Shift vertically down by cutting price. This will defend market share, but depress profits

Shift to the right by increasing value to customers. The only long term answer, but how?

Incumbents have s

How do you do the analysis?

I want to know more

How can you adapt this concept?