The Value Net Model identifies four direct influences on business success: customers, suppliers, competitors, and complementors, and explains strategies for establishing cooperative and productive relationships with them. It is important to note that one company could potentially take on multiple roles.
- Customers: Individuals who purchase the products or services the organization offers and directly contribute to bottom-line performance. The more customers an organization has, the larger its share of the market will be. It is important for an organization to acquire as many customers as possible.
- Suppliers: These companies are the ones who have the resources that are necessary to produce the organization’s products or services. Maintaining good relationships with these individuals is critical because these individuals have a lot of control over the price and quality of these supplies, which can subsequently influence the price and quality of your organization’s goods. It is also critical to have more than one supplier in the event that one company cannot provide you with the necessary resources.
- Competitors: These individuals are the ones who rival your organization for customers and purchase the same resources from suppliers. While competitors are typically viewed negatively, creating partnerships might actually provide more benefits for both companies. With regard to suppliers, combining orders in order to receive a bulk price will provide both organizations with the same products at a lower cost. With respect to customers, if there is an organization that is more dominant in another state or region, combining forces will help to grow both companies nationally or internationally.
- Complementors: These are organizations that offer products or services that would nicely complement those offered by your company and ultimately create a more desirable product for customers. Therefore, the bottom line for both companies would improve.