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

Jukka Laitamäki and Raymond Kordupleski

European Management Journal, 1997, vol. 15, issue 2, 158-166

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.

Date: 1997
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