Value-Based Strategy

Value-based strategy focuses on the generation of consumer and producer surpluses that allow a business to outcompete its rivals, and to control the growth and return on the resources it deploys. This is frequently achieved by the establishment of either a relative product, price, or cost advantage. Longer term strategic thinking will anticipate the erosion of competitive advantages and the challenge of competitors. To pre-empt these threats, it is important to identify the key future strategy enablers and blockers that will impact competitive success. Keywords: value-added; relative cost advantage; relative pricing advantage; relative product advantage