Strategy Dynamics Briefing 33: The resource quality-curve and product functionality

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When introducing new products and services, firms race to provide sufficient functionality to make them useful enough for customers to buy. As usage rises, suppliers compete by “improving” their products — adding to the sheer number of features included (figure 1). In effect, functionality for such products and services lies behind the user benefits captured by the value curve of reasons why customers choose the product and stick with it rather than switching to rival products.

Figure 1: Increasing ...
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Strategy Dynamics Briefing 29: The resource quality curve

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There are a few candidates for title of the most useful framework in strategy dynamics – and this is sure one!

The “quality curve,” lays out the quality profile of individual items within a certain type of resource. It shows how much each item – each customer, product, employee, etc. – contributes to some important measure of quality.The upper part of the following figure shows an example, constructed by showing first the revenue from a company’s largest customer, then adding the ...

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