Abstract
The potential value created with a new product or service provided by a firm is given by the difference between its (monetary) benefit, in the view of the firm’s customers, and the unit production cost to the firm. To what extent this potential value can be exploited as a market opportunity depends on the firm’s success in obtaining a competitive advantage over other firms in the market. In order to acquire a competitive advantage, a firm must outperform its rivals in value creation (cf. Besanko et al. [1]).
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References
David Besanko, David Dranove, Mark Shanley, and Scott Schaefer. Economics of strategy. J. Wiley & Sons, Hoboken, NJ, 4th edition, 2007.
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Raith, M.G., Staak, T., Wilker, H.M. (2008). A Decision-Analytic Approach to Blue-Ocean Strategy Development. In: Kalcsics, J., Nickel, S. (eds) Operations Research Proceedings 2007. Operations Research Proceedings, vol 2007. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77903-2_35
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DOI: https://doi.org/10.1007/978-3-540-77903-2_35
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