Q5: How does overshooting value create a double-bind for providers?
Hint: Offering value that customers’ don’t want is bad for the bottom line!
Ans: It increases the cost structure of a solution without increasing differential value. As such, no additional demand is created to offset the resulting margin decline.
In 2006, GC introduces a smartphone with a directional mouse and navigational button. In the customers’ mind, however, these features do not enable them to get a job done better. Customer demand does not increase and profitability declines.