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Building and deploying profitable growth strategies based on the waterfall of customer value added

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  • Laitamäki, Jukka
  • Kordupleski, Raymond

Abstract

This article aims at expanding business leaders' knowledge of the key drivers of customer satisfaction and business process excellence, and strengthening their skills in developing profitable growth strategies based on customer value added (CVA). The management thesis of this article is as follows: (1) Competitive CVA drives shareholder value; the empirical evidence is in company revenues, return on sales (ROS), and return on investment (ROI). (2) The Harnessed Waterfall generates superior CVA through improved customer satisfaction and business process excellence. (3) The CVA-Map helps business leaders to discover profitable growth strategies that rely on superior CVA and market opportunities. (4) The profit tree analysis (PTA) assists management in building and deploying profitable growth strategies for obtaining the desired CVA-position.

Suggested Citation

  • Laitamäki, Jukka & Kordupleski, Raymond, 1997. "Building and deploying profitable growth strategies based on the waterfall of customer value added," European Management Journal, Elsevier, vol. 15(2), pages 158-166, April.
    • Handle: RePEc:eee:eurman:v:15:y:1997:i:2:p:158-166
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    Cited by:

    1. Nguyen Thi Van & Nguyen Minh Tuan & Tran Phi Hoang & Le Phat Minh, 2016. "The Relationship between Customer Relationship Management and Using Decision to the Product Service of Customers: A Case Study in Vietnam," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(1), pages 107-116, February.
    2. Zenona Ona Atkočiūnienė & Justas Gribovskis & Jurgita Raudeliūnienė, 2022. "Influence of Knowledge Management on Business Processes: Value-Added and Sustainability Perspectives," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    3. Fakhraddin Maroofi & Mohammad Nazaripour & Shahoo Maaznezhad, 2012. "Investigating the Service Brand, Customers Value and its Perspective," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(4), pages 102-118, October.
    4. Lam, Jasmine Siu Lee & Zhang, Xiunian, 2019. "Innovative solutions for enhancing customer value in liner shipping," Transport Policy, Elsevier, vol. 82(C), pages 88-95.
    5. Wittmer, Andreas & Rowley, Edward, 2014. "Customer value of purchasable supplementary services: The case of a European full network carrier's economy class," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 17-23.
    6. Brodie, Roderick J. & Whittome, James R.M. & Brush, Gregory J., 2009. "Investigating the service brand: A customer value perspective," Journal of Business Research, Elsevier, vol. 62(3), pages 345-355, March.

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