The Value Curve Model

Chart a New Direction for Your Company

The Value Curve Model - Chart a New Direction for Your Company

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How does your strategy measure up?

Maya works as a project manager for a large multinational organization. She's been tasked with developing a new product that will really stand out from others on the market, and she's getting ready to present her strategy for its launch to the board.

She's done her market research, has tested prototypes with focus groups, and has completed a thorough competitor analysis. She's pretty confident that her product has the potential to fill a gap in the market that the competition has missed, but she wants to make sure that her findings are correct. She also wants to present her plan of action to the board in a quick and compelling format.

A simple strategy tool known as a "value curve" could be just what she's looking for. It helps you compare your strategy to that of your competitors, communicate it in an easily understandable way, and think about how you should shape it for the future.

What Is a Value Curve?

The concept of value curves was introduced in 1997 by academics W. Chan Kim and Renée Mauborgne. They believe that an effective strategy needs to have three main factors:

  1. A clear focus.
  2. Divergence from the competition.
  3. A compelling tag line.

The Value Curve model aims to fulfil all of these factors. It provides a useful framework for comparing your strategy against that of your competitors, by using a simple chart. This helps you focus sharply on the things that differentiate you from your competitors, and develop a clear and easily explained value proposition.

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