Value creation and competitive advantage

Using long-linked technology and its corresponding value chain configuration model as a starting point; this paper reviews and develops the value shop and value network models. We define primary activity categories, drivers of cost and value, and strategic positioning options. While long-linked technology delivers value by transforming inputs into products, intensive technology delivers value by resolving unique customer problems, and mediating technology delivers value by enabling exchanges between customers. By identifying alternative value creation technologies, value chain analysis is expanded into what we call a value configuration analysis approach to the diagnosis of competitive advantage.