Value creation

Learning Objectives: Link a thorough concept of value with implications for competition and innovation. Derive demand curves.
Lecture handout: Value creation*

You can read more about David Reynold’s model here and here. In 2013 Barry King tried to beat Reynold’s record by constructing a model of Salisbury Cathedral (which is a popular tourist destination for KGB agents). You can read more here.

Here’s an example of how Starbucks creates value for me:

This concept is closely related to “Jobs to be done”, but here’s my review of ‘Competing Against Luck‘. Here’s my bleaker application of value to Apple’s iPhone innovation:

For a more traditional, textbook treatment for demand curves, see here:

 

A great application of consumer surplus is here:

Can you think of something that delivers a lot of consumer surplus for you? What’s the most consumer surplus you’ve ever received?

Here’s a quick quiz on understanding value.


These resources form part of my Managerial Economics course map. You can watch the full YouTube playlist here. This page ties into Chapter 1 of ‘Economics: A Complete Guide for Business‘.
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