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The 5C Model

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    1. 1 The 5C Model Paul Kerin Business Strategy Term 3, 2003

    2. 2

    3. 3 The 5Cs Compete for surplus in your part of the value chain Concentrate surplus from other parts of the value chain Capture more consumer surplus Create surplus by shifting the demand curve Cooperate to capture (and create) surplus through alliances with competitors, customers, suppliers (and complementors, government, etc)

    4. 4 5C Model

    5. 5 5C sources of value

    6. 6 1. Competing for surplus is all about developing, maintaining and enhancing competitive advantage. We will cover this later in the course; for now, some examples

    7. 7 2. Concentrating surplus

    8. 8 3. Capturing consumer surplus

    9. 9 4. Creating new demand

    10. 10 5. Cooperating to capture (and create) surplus