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. Which factors can you raise above competitors and What new factors can you create?

Explanation / Answer

The factors that can be raised above competitors are user experience. Since VR (virtual reality) is still a small market and there are not many competitors you can differentiate your offering by raising the factor of user experience. You can make use of advanced hardware devices like head mounted display and gloves that are state of the art and technologically more advanced than the ones being used by competition. As user experience is enhanced it will help in creating a sustainable competitive advantage for you once the use of VR becomes more widespread.

New factors that can be created by you are new applications and uses of VR that will add more value for the users. You can develop VR applications in the field of medicine, scientific R&D, entertainment, simulations etc.

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