Value proposition development process of young dynamic companies in saturated markets: The case of the French food industry.
Coornaert, Zoé (2016)
Coornaert, Zoé
2016
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A large majority of the markets are nowadays mature, saturated and hypercompetitive, especially in Occident. Hence, it seems challenging to successfully launch a new business in such an unfavorable context. Prior studies have highlighted the central character of the value proposition in a firm’s business model and strategy. However, there is a lack of research combining the penetration of saturated market by young companies and the development of a unique and differentiated value proposition allowing companies to perform in tumultuous environments.
Thus, the study aims at identifying the key steps of the value proposition development process of young and dynamic companies on saturated markets.
The two dimensions, the content of the value proposition and its design, are evocated but the emphasis is put on the way value proposition is developed. A conceptual framework illustrates the different phases and steps of the value proposition development process identified in the literature.
The methodology chosen for this empirical study is a multiple case-study. Data were collected through semi-structured interviews and analyzed at two levels: a within-case analysis and a cross-case analysis. Purposive sampling was used to select the cases-companies. They are all French firms operating in the French food industry.
The results show that some similarities exist in the value proposition development process of young companies in saturated markets which leads to the modification of the conceptual framework. The uniqueness of each firm’s value proposition is also illustrated by the differences in their value proposition and business model.
The value proposition development process of young companies in saturated market is, in fact, shaped by the corporate culture and by the value drivers of the value proposition. The definition and specification phase is the cornerstone of the entire process and should involve the customers in order to gain market intelligence and ensure that the value drivers of the value proposition are clearly identifiable and understandable. These findings open the gate for further research and some suggestions are provided.
Thus, the study aims at identifying the key steps of the value proposition development process of young and dynamic companies on saturated markets.
The two dimensions, the content of the value proposition and its design, are evocated but the emphasis is put on the way value proposition is developed. A conceptual framework illustrates the different phases and steps of the value proposition development process identified in the literature.
The methodology chosen for this empirical study is a multiple case-study. Data were collected through semi-structured interviews and analyzed at two levels: a within-case analysis and a cross-case analysis. Purposive sampling was used to select the cases-companies. They are all French firms operating in the French food industry.
The results show that some similarities exist in the value proposition development process of young companies in saturated markets which leads to the modification of the conceptual framework. The uniqueness of each firm’s value proposition is also illustrated by the differences in their value proposition and business model.
The value proposition development process of young companies in saturated market is, in fact, shaped by the corporate culture and by the value drivers of the value proposition. The definition and specification phase is the cornerstone of the entire process and should involve the customers in order to gain market intelligence and ensure that the value drivers of the value proposition are clearly identifiable and understandable. These findings open the gate for further research and some suggestions are provided.