Before revision: Value Migration: How to Think Several Moves Ahead of the Competition Hardcover, Harvard Business School Pr , Three types Value flows between industries — example: from airlines to entertainment Value flows between companies — example: from Corel WordPerfect to Microsoft Value flows between business designs within a company — example: from IBM mainframe computers to IBM PC's with system integration Three stages Value inflow stage — value is absorbed from other companies or industries Value stability stage — competitive equilibrium with stable market shares and stable profit margins Value outflow stage — companies lose value to other parts of the industry - reduced profit margins - loss of market share - outflow of talent and other resources The value chain is the sum of all activities that add utility to the customer.
After revision: Value Migration: How to Think Several Moves Ahead of the Competition Hardcover Harvard Business School Pr ,  The value chain is the sum of all activities that add utility to the customer.