Value migration is a term that is used to shift the value creating forces. In marketing, value migration is a useful as well as an essential area that needs clear focus. Actually, value migrates from the outer business models and frameworks towards the business designs that are easy and better to satisfy and fulfills customer’s needs and wants. Various marketing strategies combines together in order to fulfill the needs as well as demands of the customers. Customers can only be satisfied if they are getting right product at right time.
Thus, value migration is termed as an essential area with the help of which customers can get what they want and in the long run it will give beneficial outcomes to the business. This whole procedure carries on with the help of value migration. When value is migrated, it actually transfers the core benefits of one product to another in order to make it beneficial and useful for the customers.
There are three types of value migrations:
1. Values between companies
2. Values between industries
3. Values between one business model to another
Along with this, value migration takes place by following the below mentioned three stages:
First, value inflow stage occurs when value is absorbed from other various industries and companies. While in the second stage, competitive equilibrium is maintained while in the last stage, companies and industries loose values to the other firms and industries.
Value migration is thus termed as an important area with the help of which a company can maintain stability and can know how to fulfill consumers / customers needs and demands. This is thus an important area that needs consideration and various firms are now working in order to make their consumers / customers happy and satisfied.
Adrian J. Slywotzky (1996), “Value migration: how to think several moves ahead of the competition”, Harvard Business Press, pg 327