The future of competition - Value-creating networks

In buyer-seller relationships, the focus has moved beyond individual firms to value-creating networks formed by key firms in the value chain that deli ver value to the end consumer. The article develops a rationale for value-c reating networks using three core building blocks: superior customer value, core competencies, and relationships. The rationale is developed based upo n an understanding of the value-creation process and its links to core capa bilities of firms in the network. The importance of inter-firm relationship s in realizing the true potential of the value-creation networks is also hi ghlighted. The authors argue based on their sample analysis of some example s that competition in the future will shift to the network level from the f irm level. The influence of some emerging business tools such as electronic commerce on redefining value creation is also discussed. rights reserved. (C) 2001 Elsevier Science Inc. All rights reserved.