One of the most important aspects of recent business strategies is the concept of value disequilibrium. It is a concept where the services which means providing the customers with either goods or services that have more value than they have expected or even the product they have brought. This is one of the ways of marketing the product and the company (Morana, p. 406). If we look on an overall level one can say that this is not a profitable aspect of business. Some times the critics of this process even give an example. Let’s discuss that example in the very beginning. Mr. A has brought a product B from Company C for $ 75. It is an electronic product and it needed servicing for 3 times. The company provided free home services every time and also provided Mr. A with some accessories free of cost. The critics calculated that all the three services and free gifts alone cost the company more over $ 45.
So the margin of profit is getting lesser if the company uses value disequilibrium. But there is a different thing. By the services of the company Mr. A will get pleased with the company and he if further goes to buy any electric equipments will always prefer Brand B. The most important aspect off value disequilibrium is that it is one of the most convenient processes to have loyal customers. And this is really very important for any organization. Cost leadership is the process of establishing the competitive advantage of a company and it is one of the processes that aim to really increase the production scales. Along with Cost Leadership, differentiation strategies also help a company to stand out from the other players or the competitors of the market. And in this processes value disequilibrium is one of the main points. In the following part of our discussion, we will discuss how these three processes can intermingle with each other to bring ultimate profit to an organization (Farmer and Geanakoplos, pp. 14-15).
Let us start with cost leadership. While starting a new process the organization must look closely at all the aspects of the new products, like what will be the cost of manufacturing the product, the marketing and publicity costs and other costs and they will try to keep the cost of the product as low as possible to generate much revenue, obviously without compromising with the quality of the product. The question of the differentiation strategies that will be taken for the selling of the product becomes important (Morana, p. 306).
This will be one of the most important aspects of the company as they will have to differentiate the product from all the products that are available in the market. And finally, after the initial sale of the product comes the question of value disequilibrium. Though it initially costs some money for the company, ultimately it helps the company to hold the loyal customer base of the company. This is one of the most important aspects for any company in the days of economical slowdown (Morana, p. 399).
In the final analysis, we can say that it is not possible for a small company to use value disequilibrium for the publicity of the company to any extent, but all the large corporations are using it to a very large extent. And this is one of the very important aspects of modern-day business.
- Farmer, Doyne J., and John Geanakoplos. The virtues and vices of equilibrium and the future of financial economics. Complexity 14.3, (2009): 11-38.
- Morana, Claudio. A small-scale macro-econometric model for the Euro-12 area. Economic Modelling 23.3, (2006): 391-426.