Value Net Model

Evaluate your competitors and make well-informed strategic decisions

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Identify the key players in your industry and evaluate their behavior; value net model, value chain analysis, strategic group maps, product positioning maps, perceptual maps, and more
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More Value Net Model Templates and Examples

Value Net Model

Value Net Model Template

Strategic Group Map

Perceptual Map Template

Perceptual Map For Situation Analysis

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Guide and Best Practices

Developed by Adam Brandenburger and Barry Nalebuff and introduced in their book “Co-Opetition: A Revolution Mindset that Combines Competition and Cooperation”, the value net model is used to identify the key competitors of an organization and determine their behavior. In doing so it helps to make well-informed strategic decisions. The two authors state that an organization can achieve far more by cooperating with each other rather than competing against each other. This new notion of competition is presented as co-opetition. The value net model identifies the key industry players who are vital to the operational success of the organization (customers, suppliers, competitors, and complementors).

How to Use the Value Net Model

Understand the interdependencies between your organization and the other key players in the industry highlighted in the model
- Customers: these are the individuals or parties who purchase your product or service
- Suppliers: they provide the resources necessary for your business to produce or sell your products or services
- Competitors: these are the parties that fight against you for the same market share with similar products or services
- Complementors: these include other businesses that offer a product or service that can work well with yours, making the end product more attractive to the customer
To formulate your strategy based on the value net model, Brandenburger and Nalebuff suggest using it alongside the PARTS (Players, Added value, Rules, Tactics, and Scope) approach.
Start by identifying and listing down the players (customers, suppliers, competitors, and complementors) who can impact your business. Consider opportunities for cooperation or competition with them or the possibilities for forming a strategic alliance with any of them. Identify any external players who could join the industry.
Measure what each player, in their own role, can offer should they build an alliance with you. Also consider your organization’s own sources of value (i.e. competitive advantage, USP, or supply and demand) and how you can create value to customers or suppliers in case you join forces with another player.
Evaluate the rules and regulations in the industry that must be followed. Consider which of these can help or hinder your growth, and which rules can be changed in your favor if you collaborate with another player.
Identify the tactics you can use to shape the perception other players have of you and that can influence their behavior.
Define scope; identify how you can benefit from increasing your scope by linking to products or services in other relevant industries. Also, look into how these actions may influence the perception and action of other players.