Above Average Sources
- Create new markets through new products
- Convince existing customers to buy more of a product
- Attract new customers to the market
Average Sources
- Gain market share in a fast-growing market
- Make bolt-on acquisitions to accelerate product growth
Below-Average Sources
- Gain share from rivals through incremental innovation
- Gain share from rivals through product promotion and pricing
- Large acquisitions
Price-Premium Sources
- Innovative Products
- Quality
- Brand
- Customer Lock-In
- Rational Price Discipline
Cost/Capital Efficiency Sources - Innovative Business Methods - Unique Resources - Economies of Scale - Scalability / Flexibility
Koller, T. et al. (2010). Value: The Four Cornerstones of Corporate Finance. Wiley.