Create value for your startup
Creating value for your startup is a repetitive process that you must constantly be changing and upgrading. Long term success is achieved by constantly creating and recreating value.
1. Create value – obviously the first step would be to create the initial value. You need to set your product apart from all of your competitors.
2. Capture value – next you need to choose business activities that your customers are willing to pay for, but still at a high enough price where your company can remain sustainable off of the profits.
3. Renew value – this is where you see companies that appear on the surface to be doing great drop out of the market. Renewing value is the most important of the three steps for long term success. Adapting to the market you are in is very important. (think about disruptive innovation)
If you take a look at the article, it discusses what happened with Blockbuster and the rise of Netflix. It then discusses how Netflix needs to keep an eye out for HBO and CBS due to their online streaming customers. What could Blockbuster have done to prevent Netflix from capturing their customers?
Do you guys agree that the third step is where successful companies need to focus on for long term success?
What other things do you feel are important in regards to value and startups?