Value grid

Value grid

The value grid model was proposed by Pil and Holweg as a means to show that the way firms compete has shifted away from the linear value chain way management theory has traditionally thought about value chain management.

The advantages of a value-grid framework, as opposed to value chains, is in allowing companies' managers to strategize and coordinate operations. Common non-linear value chain strategies Strategies include influencing demand, modifying information access, exploring multitier penetration, managing risk, seizing value, integrating value, creating new value propositions, exploiting value chains across tiers, pursuing pinch-point mapping, and defining demand enablers.

Literature

Pil, F.K. and Holweg, M. (2006) "Evolving from value chain to value grid." MIT Sloan Management Review, 47(4): 72-80

ee also

*Value chain
*Supply chain management


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