New Ball Firms Essay

Submitted By LottaMaria
Words: 362
Pages: 2

Performance Indicator

1. Does the technology create value when it is incorporated into golf balls?

The value based business strategy: No it does not create value
There is no existing vertical chain in the business. The supplier of the technique exists but not the firm creating value nor the buyers (buyers maybe, we don’t know)
Creation of additional value is not possible either while the chain is not there- no bargaing.

Yes, it does create value because buyers would maybe pay more for a golf ball, which has a technique that tells if one can trust for the golf-game results. Value is created as the willingness to pay would maybe higher and as technology would not be applied in all firms producing golf balls, there would be asymmetry and value creation.

2. Value creation and capture would change, how?
Willingness to buy used golf balls would probably drop. The value of used golf balls would drop and firms selling these used balls would decrease in number, as there would be less these firms the price of used balls would stabilize.
The value creation would increase for the new balls firms as the number of new golf balls would increase in numbers (because the willingness to buy old balls decrease and the balls would faster become “bad”)
New ball firms would manage to create and capture more value.
The markets of used golf balls would drop.

3. Markets would become symmetric and value creation and capture advantage between new ball firms would…