Friday, April 28, 2006

Revisiting the four "P's"

It has been reported that Wal-Mart, which represents almost two percent of the Gross Domestic Product of the United States, is "afraid" of Google because the powerful search engine may make comparability of price more transparent, and thereby hit the powerful retailer right in the heart of their value proposition. If a capable upstart or competitor jumps ahead of you in the demand chain, they can poach your customers, and steal the value that you extract from the entire rest of the customer experience. All that hard work to build stores, logistics, and low-cost delivery is at risk if the customer is diverted at the very beginning of the demand chain. Put another way, being first in the demand chain is the most valuable place to be in any value network.

Read Article Here!