1. From Value Chain to Value Constellation: Designing Interactive Strategy Group 6: Jia Qiong Wang Tao Wang Lusha Sohail Safdar 1-

2. The traditional thinking: Every company occupies a position on a value chain: - Upstream, suppliers provide inputs; - the company then adds value to these inputs, before passing them downstream to the next actor to the chain - the customer Value is grounded in the assumptions and models of an industrial economy. Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Value Value Value Value

4. Today Strategy is no longer a matter of positioning a fixed set of activities along a value chain. Successful companies tend to not just add value, they also reinvent it. The value creating system itself, within which different economic actors – supplier, business partners, allies, customers – work together to co-produce value.

6. Supportive Examples from the article: IKEA wants its customers to understand their role is not consume value, but to create it. IKEA itself is not so much a retailer as the central star in a constellation of services, goods, design, management, support, and even entertainment. Both of the two companies’ core competence is not water or even utilities but rather the financial, social, legal, managerial, and technical engineering that ensures the smooth operation of public infrastructures. The secret of value creation is building a better and better fit between relationships and knowledge, in other words, the ever-improving fit between competency and consumers.

7. The New Media Firm: Slogan: Broadcast Yourself

9. How achieves success? Advertising is YouTube's central mechanism for gaining revenue. YouTube has always been trying to prove to its customers the tremendous popularity of its website among its users. Appealing people to use its service becomes its primary task. But how?

10. Supplier Viewer Value Value Value Value

11. New Business Models The value creation is increasingly based on harnessing open source/content, networking, sharing, peering, and acting globally.

15. YouTube tries its best to let its users understand that their role is not a web page content viewer, but a content creator . This is why YouTube is so popular among its users, and also why Google is willing to spend 1.6 billion USD to acquire it. This is also an obvious evidence that YouTube is adopting the interactive strategy that always makes its user feel a sense of creating value rather than purely acquiring value. On the other hand, YouTube could think out of the traditional media industries boundary, and taking the risk to change the industry curve. Because of doing so, YouTube becomes the pioneer who can drive important changes in its industry and rewrite the rules of competition. In the example of YouTube, the successful reconfiguration of roles and relationships among the constellation of actors (viewer, content supplier, customer & itself) in order to mobilize the creation of value in new forms and by new players, is just the presentation of an ever-improving fit between its competencies and customer, which is created by YouTube.