A value curve plots multiple metrics that are important for your target customer

Question

A value curve plots multiple metrics that are important for your target customers (i.e. price, ease of use, speed, accuracy) with the low-high measures for competitors and yourself. By examining the existing and expected competitive offerings, you can analyze which metrics to modify in order to create a new value curve analysis. Virtual reality is still a very small market but that's not stopping many tech companies from investing lots of time and money to bring new VR tech to market. Since the market for the industry is small, there currently is not a need for mass production, which may save a lot of initial manufacturing cost in terms of capital intensity. Virtual reality is a new and emerging market, so the firm concentration is low because there are not that many competitors. The average firm size is also very small because there isn’t enough motivation due to the lack of research and development of virtual reality devices. Where can you reduce factors and not reduce value and Which factors can you raise above competitors?

Explanation / Answer

The factors which can be reduced while ensuring that value to customers are still not reduced are factors like portability and use of the VR (virtual reality) technology in different mediums. Initially the users and the buyers would want to use the technology in its basic form and to experiment with an artificial environment. They will not be too concerned with portability (i.e. ability to switch to different service provider) and expandability. So these factors can easily be reduced without reducing value for customers.

Factors that can be raised above competitors are factors like features and user experience. VR is all about providing superior 3-D experience and the user experience can be augmented by using the state of the art hardware devices and software applications.

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