Business Strategy

The value net is a game theory model describing how a company interacts with external roles of customers, suppliers, competitors, and complementors. Leaders may use the value net to manage teams that create and capture value. Teamwork is the art of communicating within the value net.

Strategic advantage consists of having supply advantages, demand advantages, and/or economies of scale acting as actual barriers to entry in a bounded market. Innovators create value by developing new customers to purchase new products. Innovators capture value by establishing a business model that can rapidly scale with strategic advantage.

The business concept is a summary model including the management team, distinct features of the product or service, benefits to customers supported by distinct features, the marketing plan, and the strategic advantage to shield profits from competition.

Company managers operate to create and capture value. This value is linked to balance sheet growth. The sources of growth funds are equity, debt, and operating profits. Asset growth can be financed by either venture investment or by earnings power expansion.