Creating Value for Customers

Creating Value for Customers

“Customer value is the outcome of a process that begins with a business strategy anchored in a deep understanding of customer needs.”

Customer Value.

Offering superior customer value is at the core of the eBay business design.

Providing Value to Customers

As discussed earlier, the organization’s distinctive capabilities are used to deliver value by differentiating the product offer, offering lower prices relative to competing brands, or a combination of lower cost and differentiation.

Value Initiatives

Strong progress was reported in the following areas:

· Analyzing customer needs and instilling customer-focused behavior in frontline employees (70 percent or more);

· Analyzing target markets and boosting service quality (60 to 70 percent);

· Using cross-functional teams to develop products and services (about half);

· Achieving operational excellence (about half); and

· Innovating (about half).

An Economist Intelligence Unit Report in 1999 contained interviews with executives from many leading companies throughout the world.