The document discusses the keys to creating value, which are identifying value opportunities and managing the process. It provides three real-world examples of companies that successfully created value: QVC in the media sector, a real estate website in services, and TracFone in technology. QVC was able to become the #1 home shopping network by leveraging its distribution channels as its value proposition, despite being the 34th entrant to the market. The real estate site created value by making listings free and generating revenue through upsells and partnerships. TracFone restored value to old cell phones through an innovative business model involving SMS, GPS, and a razor-and-blade revenue approach.
2. Value Creation
• The Keys are:
– Identifying Value Opportunities
– Managing the process
• Three Real World examples in the
– Media
– Services
– Technology Sectors
3. The Value of Media
• QVC #1 Today
Has shipped 1 Billion Packages
• But QVC was the 34th Entrant!
• A Little Background
4. Value (QVC’s middle name)
• QVC’s needs were similar to
those of most businesses
– New customer acquisition
– Customer retention
– Build barriers to entry
– Ability to manage change
But the real Innovation was…
5. The Value Proposition was
distribution
• Cable partners
• Equity for distribution
• Concurrent IPO
• Funding and Barriers to Entry created
6. The Value in Service
• From Chapter 11
to Real Value
7. Confused Value Proposition
• Associations & MLS Service
inactivity
– Large Companies
– Innovative Realtors
– Same content
– Few Barriers to entry
• FSBO Sites seeking disruptive
advantage
8. Little Consumer Value!
• The Old Model didn’t work
– Home sellers were asked to pay
– Alternative to Real Estate
Commissions
– Went Bankrupt
– The Innovation was …
..if you can’t sell it…
9. Create new value relationships
• Give it away!
– Same site construct but Lead
generation was the new value
proposition
• Free listings = maximum adoption
• Upsells
• Mortgages & Title companies
• Insurance and so on and so on