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Co‐creation of Value by Open Innovation: Unlocking New Sources of Competitive Advantage
Author(s) -
Martinez Marian Garcia
Publication year - 2013
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21347
Subject(s) - marketing , competitive advantage , value (mathematics) , value proposition , business , product (mathematics) , co creation , dialog box , commodity , new product development , element (criminal law) , open innovation , industrial organization , economics , computer science , geometry , mathematics , finance , machine learning , world wide web , political science , law
A focus on the consumer has been recognized as the key to unlocking new sources of competitive advantage. This paper looks at this new perspective in value creation where personalized consumer experience takes central stage as opposed to a product and firm‐centric view. Through an explorative case study, the paper illustrates how a joint innovation effort between Molson Coors Brewing Company UK (MCBC‐UK) and a supplier is leading to more open approaches as consumers are involved in the process. By understanding what consumers' value and engaging in active dialog and interaction, MCBC‐UK has been able to develop superior value propositions relevant to their target consumer base. The case underscores the role of consumer value creation in a commoditizing world where companies can seek to maximize the lifetime value of desirable consumer segments by taking consumers as a partner or co‐producer instead of an external element. Food and drink companies have the opportunity to add value and extricate themselves from commodity sectors where the lowest cost provider holds sway by embracing consumers' ideas as part of the innovation process.