Give your reply/opinion to the answer.

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Q. Using an example from your own industry/company you are familiar with, develop offensive and defensive actions strategy to address the competitors based on the value capture model.

A. The concept of Value Network Map(VCM) sounds like the idea of Value Chain(VC), a network of facilities and processes that describe the flow of materials, finished goods, services, information, and financial transaction from suppliers through the facilities and processes that create good and services and those that deliver them to the customer (Collier, Pg. 11). The VCM consists of internal and external drivers or economic network that contribute to goods or services from an organization to consumer. The internal agents is the VC within the organization. The external agents or competitive periphery consists of competitors or uncontrollable industry factors that affect your VC. Similarly, the concept of Supply Chain(SC) is comprised of many factors such as process design, inventory management, scheduling, quality management, delivery, and follow up with the customer. The third truth is that there are two essential ways a firm captures value, either through force of competition or through force of persuasion (Ryall, 2013).

It is important to note that when Amazon first launched, their initial goal or offensive strategy was to create a reliable online bookstore where customers could find a variety of options for a good price. However, their long-term or defensive strategy was to scale from books to all possible products. He (Jeff Bezos) wanted to create the everything store. That would require that ordinary consumers trust they were getting a good deal, which meant that Amazon would focus relentlessly on lowering prices, despite pressure from investors for early returns (Gans, 2020). There offensive and defensive strategies has always been to charge low prices for minimal profits to obtain a consistent competitive advantage and majority market share because of the unpredictable competitive periphery.