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APPENDIX C
Since 2008, we have conducted an ongoing research effort to identify the value propositions of
companies around the world. This often involves deconstructing the ways to play of particular
companies: breaking down the value they provide to customers into common strategic archetypes. We
have identified fifteen of these puretone archetypes, as we call them. They are prevalent in
companies around the world. Most companies combine two or more of them into a more distinctive
strategy. You can use the puretones to identify another companys value proposition, or to design your
own.
To illustrate and clarify each puretone way to play, we have long used the examples listed here.
They are meant to demonstrate each concept with real-life, generally understood examples. Some
companies are listed under more than one puretone; their value proposition is bespoke to them, unlike
any other, all distinctive variations on the archetypal puretone themes. Nonetheless, in looking at the
list of examples, the essence of each value proposition may be easier to grasp.
Table C-1
Definition
Comments
Amazon
Aggregator
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upstream supply GE
markets, gaining
Pfizers consumer healthcare business in
leverage and
customer loyalty 2001 2006 (as described in this book)
Starbucks
Walmart
Consolidator
Dominates an
industry through
acquisitions
(rolling up an
industry) to
provide either a
value benefit to
consumers or
access to a
platform with
products and
services that
otherwise would
not be possible
Danaher
GE
Customizer
Haier
Inditex
Helps customers
bypass
unreachable or
more expensive
distribution
channels and
Disintermediator parts of the value
chain, thereby
providing access
to otherwise
inaccessible
services and
products
Apple
Hotel chains with a design-based or
specialty value proposition
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IKEA
Lego
Experience
provider
Builds enjoyment,
engagement, and
emotional
attachment
through strong
brands or
experiences
McDonalds
Sports car makers
Natura
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Starbucks
Virgin Airlines and other Virgin companies
(Virgin Group)
Fast follower
Leverages
foundations laid Generic pharmaceutical manufacturers
by innovators to
quickly introduce Google (with Android)
competing
Hyundai
offerings, often at
greater value or to Chinese shan zhai (innovative knock-off
a broader base of manufacturers)
consumers
Apple
Haier
Innovator
Introduces new
and creative
products or
services to the
market
Inditex
Leading-edge biotech companies
Procter & Gamble
Philips (Koninklijke Philips N.V.)
Salesforce.com
Under Armour
Electric power utilities
Lego
Microsoft (with Windows)
Platform
provider
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products or
Premium player services
Regulation
navigator
Nordstrom
Premium hotel chains such as Ritz-Carlton
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CostCo
Reputation
player
Risk absorber
Mitigates or pools
Risk absorbers enable others to extend
New hybrid health care providers-payers,
market risk for its
entrepreneurially or help them navigate
following the Kaiser Permanente model
customers
uncertainty.
Many insurance companies
Solutions
provider
IKEA
JetBlue
Value player
Offers lowest
McDonalds
prices or
tremendous value Ryanair
for comparable
Southwest Airlines
products and
services
Tata Motors (with the Nano)
Walmart
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