I want to know the answer to the question and how to solve it THINKING DIFFERENTLYFrom five forces to oneA new competition view focuses on how value is created and captured.A new 'value capture model' based on game theory player's competition force then depends on how manyaspires to replace Porter's competitive forces frame-work. 25 The power of his five competitive forcesdefines the opportunities of a firm. The new modelrather emphasises how the firm's opportunitiesdepend on how the firm, suppliers and buyers createvalue together. They then compete for a share of that suggests that value creation and value appropriationvalue based on a single competition force that eachplayer has.Compared to Porter's framework, the emphasis inothers it could create value with. For example, if a firmhas many alternative suppliers and buyers to createvalue with, its competition force would go up as it canthreaten to make transactions with someone else andthus bargain up its share of the value pie this way. Thisare linked in this model. The more value the firm cancreate with various suppliers and buyers the larger por-tion of this value it can capture.this model is more on how value is created betweenparties. The firm and its suppliers and buyers comprisea value network of transactions that create value tobe shared among them. They then compete for theirshare based on the single competition force each has:suppliers compete for firms, and vice versa; firmscompete for buyers and vice versa. A firm, for exam-ple, wants to make transactions with certain suppliersand customers to create value, but also to capture asmuch of that value as possible. The strength of eachQuestionHow would you compare the 'value capturemodel' with Porter's five forces when makingan industry analysis? What's the benefits anddrawback of each?

The value model was hence to know the fine actual worth of the industry in then make strategies…

Answered: Question How would you compare the…

Question How would you compare the 'value capture model' with Porter's five forces when making an industry analysis? What's the benefits and drawback of each?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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