A Study On Customer-oriented Value Innovation

Today, because of homogeneity of the competition means in various industries, the grappling between enterprises become increasingly fierce. More and more enterprises in a limited market space strive for market share. Under such circumstances, regardless of adopting the "cost leader","difference" or other traditional competitive strategies enterprises will be very difficult to win easily, who have access to enormous economic profits and realize sustained growth are in the few more.In this context, W. Chan Kim and Renee Mauborgne(1997), professores of The European Institute of Business Administration , proposed Value Innovation Theory, for the first time and look forward to help enterprises overcome the competitive difficulties, achieve and maintain excellent performances.Value Innovation Theory is not only the development of Customer Value Theory, but also a new stage of Strategy Theory. It is is a set of system related to the activities of the enterprises. It provides a new strategic thinking that changes from positioning in the given structure of the market to changing the market structure itself, jumps out of the competition with the opponents, places customers at the center of attention, emphasizes providing customers with outstanding value. By screening and rearranging the value elements of different customer market,enterprises may restore market and industry boundaries, open a huge potential demand. So these enterprises can provide outstanding customer value while achieving low-cost, achieve the target through the implementation of strategies ,and break away from competition plight in deed.In the booming economy of China, many enterprises have been unconsciously engaging in the activities of value innovation, and creating some new markets with excellent performances, such as wafer leading OEM—TSMC, banking online business model blazer—China Merchants Bank, focus media pioneer—Focus Media. The tremendous success of these enterprises verifies the feasibility and effectiveness of value innovation theory.In short, in the modern context, through the successful implementation of value innovative strategy, enterprises are able to break through the fiercest competition and creat new market space so as to realize and maintain excellent performance.And enterprises can adopt a systematic approach to achieve this goal.