Prahalad, C. K., & Ramaswamy, V. (2002, April 2). The co-creation connection. Strategy +
Business 2(27). 1-12. Retrieved from https://www.strategy-business.com/article/18458
For companies to successfully generate a positive value for their consumers, they must consider how they co-create connection with those who they used to think of as passive. Traditional company views of value have been monetary; the belief that the bottom line or profit margin determines value, and therefore constructs internal structures and processes, has been the long-standing belief. With the spread of the internet and constant connectedness the consumer is both able to contribute their definition of value when and how they want, as well as engage in competition for the best value between brands. Prahalad and Ramaswamy contend that companies should consider four components of exchange: managing transactions, determining how choices are made, how consumption experience is staged, and how price and performance relate. Transactions focus on how communications are available. The example of self-service or automated information versus interactive options was presented; companies must strike a balance between the two. Choice illustrates how information is communicated; is there clarity and alignment? Creating a consumer experience is vital in the usability or interaction a consumer has with a product. Companies must think about what intuitive or what data from user experience testing tells them. Consumers now how a plethora of options for price comparison, and successful brands balance the cost of their product with an appropriate cost access point. In order to achieve co-created value companies must genuinely dialogue with consumers for understanding, create access points for all exchanges in the relationship, reduce risk in the process of co-creation, ensure information is transparent as relevant to the company’s model.
While technical, this article helped me consider the ways in which organizations create bonds of communication with stakeholders outside of their organization. Whether this is a corporation or a non-profit, identifying potential avenues, strengths, and pitfalls of external communication help me to be a more conscious communicator.
LO2: demonstrate the ability to assess complex organizational environments and achieve communication goals.
LO6: create and deliver elegant messages appropriate to audience, purpose, and context.
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