Whether yours is a startup company or a going concern, it is necessary to position all parties in the value network business model in order to add value which can then be delivered to customer supply. Based on the information collected, value can be analyzed, and within this network a company’s value share position can be determined.

From this evaluation of the new combined business model and the  analysis of the value network, which is included in the creation of values, a zero point can be determined. This represents a position from which we can  begin to look for different alternatives and simulate some desired states of the business model we would like to achieve.

Only a year ago, Ryanair’s planes landed regularly at the Edvard Rusjan Airport (line Maribor –London) not far away from my home. The Rast company managed the airport but soon ceased to cooperate with the Irish carrier because Ryanair required what Rast considered to be too high a fee for flights to that airport. Rast proposed that Ryanair raise its ticket prices, rather than requiring Rast to pay any compensation, a proposal that was greeted by Ryanair as absurd. All Ryanair flights to the Edvard Rusjan Airport immediately ceased.

Ryanair would still fly the London-Maribor line today if Rast had created a map of the value network, identified the participants in that network and evaluated the importance of the stakeholders by criteria

That analysis would have helped Rast by providing a base for combining stakeholder business models. Moreover, other stakeholders in the region, such as hotels, shops, and restaurants, which would be patronized by Ryanair passengers, would have needed to be involved in the value propositions.

This range of stakeholders also includes other businesses that offer accommodations (apartments and guesthouses), skiing, sport events, cultural events (museums, galleries, and concerts), souvenirs, etc. Rast should have combined the business models of all interested stakeholders with its business model into a new model that would have provided the required very high fee.

The regional community and the Tourist Association of Slovenia should have played a crucial role and could have prevented the loss of Raynair, which transported a few thousand tourists to Slovenia annually.

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Comments
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  3. […] position from which we can  begin to look for different alternatives and simulate some desired … Read More RECOMMENDED BOOKS REVIEWS AND OPINIONS The Business Model Database […]

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