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The Value Stick Framework is a strategic tool introduced in the book 'Better, Simpler Strategy' by Felix Oberholzer-Gee. It's a concept that helps businesses understand how to increase their value proposition to customers. The 'stick' represents the total value that can be created and captured. The top end of the stick represents the total value a customer is willing to pay for a product or service. The bottom end represents the cost of producing that product or service. The space in between is the value that can be captured by the company. The goal is to increase the length of the stick (total value) and the portion that the company can capture.
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Exclusivity is a tricky choice. Ask yourself if you seek to gain the most if you grow your market share or grow the category overall. To grow market share, keep complements exclusive. To benefit from category growth, go for non-proprietary industry-standard complements. To discover complements, ask yourself what customers do before they interact with your business and how you can reduce friction there.
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Ever wondered what strategies make Apple, Amazon, and other juggernauts so successful? Better, Simpler Strategy by Felix Oberholzer-Gee shares top ins...
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