Eleonora Escalante
Eleonora Escalante
Value Propositions:
Theory and cases
Eleonora Escalante
Eleonora Escalante
eonora Escalante
Episode 5
The philosophy behind
Osterwalder Canvas.
You are learning with the
Spring Saga of the year
From January 22nd to May 6th, 2024.
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Eleonora Escalante
Value Propositions: Theory and Cases.
Outline
1.
Introduction
2.
The history of Marketing: The background of value propositions
3.
What is a value proposition?
4.
Problem solving in the context of value propositions.
5.
The philosophy behind the Osterwalder Canvas
6.
Customer profile. Gains. Pains
7.
Value map. Gain Creators. Pain relievers
8.
Fit between the Client and the Value Map.
Today
EASTER WEEK HOLIDAY No publication this week.
9.
Let´s practice. Example 1. A Global Consumer Packaged Good (CPG)
10.
Let´s practice. Example 2. A Fast-moving Consumer Good (FMCG)
11.
Let´s practice: Example 3. A Technological Computer Peripheral Equipment Manufacturing
12.
Let´s practice: Example 4. A Luxury Precious Stone Mining
13.
Let´s practice: Example 5. A Global Transportation Services Enterprise
14.
Let´s practice: Example 6. A Financial Sector initiative
15.
Let´s practice: Example 7. An agriculture-food security product
16.
Strategic Reflections about Value Propositions.
17.
Summary and conclusions.
23/02/2024
This outline is subject to change if the author considers it appropriate.
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2
Tentative Schedule Program (subject to change)
Page 1/2
Today
Week 1
22-01-24
Week 2
06-02-24
1
2
Introduction
The history of
Marketing: The
background of
value propositions
Week 2
09-02-24
3
What is a value
proposition?
Week 3
13-02-24
Week 4
16-02-24
Week 5
23-02-24
Week 6
01-03-24
Week 7
08-03-24
4
R
5
6
7
Problem solving
in the context of
value
propositions
Researching
& Updating
knowledge.
No
publication
today
The philosophy
behind the
Osterwalder
Canvas
Customer
profile.
Gains. Pains
Value map.
Gain Creators.
Pain Relievers
This outline is subject to change if the author considers it appropriate.
23/02/2024
Eleonoraescalantestrategy.com All rights reserved 2016-2024
3
Tentative Schedule Program (subject to change)
Week 8
15-03-24
8
Fit between
customers
and value
map
Easter
Week
22-03-24
V
Easter
Vacations
No
publication
this Friday
Week 9
29-03-24
9
Let´s
Practice.
Example 1
Page 2/2
Week 10
05-04-24
Week 11
12-04-24
Week 12
19-04-24
Week 13
26-04-24
Week 14
03-04-24
Week 15
09-05-24
Week 16
17-05-24
Week17
24-05-24
10
11
12
13
14
15
16
17
Let´s
practice.
Example 2
Let´s
Practice.
Example 3
Let´s
Practice.
Example 4
Let´s
Practice.
Example 5
Let´s
Practice.
Example 6
Let´s
Practice.
Example 7
Strategic
Reflections
about
Value
Proposition
s
Summary
and
Conclusions
The Summer saga of the year will kick-off as of June 14th, 2024.
23/02/2024
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4
Value Propositions: Theory and Cases.
Before starting this chapter, we must acknowledge that the economists that we will refer
today were all affected before, during and after the National Socialist (NS) Nazi regime
rise to power.
Some were pro nationalistic of Prussia, others were followers, others were opportunistic, others were spies
or double-agents, and others were victims. The majority had a Jewish origin.
• It is impossible to accuse a specific economic school with direct pro-Nazi tendencies.
• It is a cruel mistake to link the German Historical School of Economics with a socialist
ideology or with a Marxist tendency.
• The German Historical School of Economics was born from History, and it took a shape
against the premises of the British-Scottish Classical School, which supported the
Victorian International Expansion and the domestic Industrialization in Great Britain and
the USA. But that doesn´t situate the German Historical School as the cradle of pro-Nazi
posterior support. You will discover it in this session.
• There has been an intensive research about Austrian, and German economists of the
19th century and beyond in relation to its links to the Nazis.
• During the 19th century, which is my domain of attention today, the mainstream of
economists of that time were disturbed by the consequences of Revolutionary France
and Napoleonic takeover of Germany. German and Austrian economists were inclined
against the revolutionary revolts, with a unique exception: Marx and his followers.
• The context of the German Historical School: The field of Economy was tied to law,
politics, history or philosophy, and just a few academic chairs in political economy
existed. During the WWI and previously to WWII the next generation of these
economists were doing research in Germany, Austria, or Switzerland; and many were
forced to leave in exile. Some were captured and experienced prison in the holocaust
camps, meanwhile others were simply opportunistic that adhered to the NS Third Reich
in their quest to survive or obtain a position in a German University of prestige, or
during the Anschluss in Austria.
• For more information: Read https://www.hetwebsite.net/het/schools/emigres.htm
The rise of Fascist and Nazi governments in
Central Europe during the 1920s and 1930s was
usually accompanied by the purges of universities,
and the dismissal of faculty, researchers and
students. Our teaching session of today goes back
before the Nazis ascension to power, our analysis
is situated in the 19th century.
By far, most of these economists were Jewish.
23/02/2024 Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
5
Value Propositions: Theory and Cases.
Why the CVP is linked to an economic thought? Particularly to a mix of several schools
of economic thought?
The Value Map
23/02/2024
The Customer Profile
Source References: See slides
slide 12.
24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
6
Value Propositions: Theory and Cases.
For Osterwalder-Pigneur the definition of value proposition (CVP) is practical.
The criteria that is privileged in their conceptualization of the framework is the “customer is the king”.
Question: What is the school of economics thought behind Osterwalder-Pigneur
framework?
Answer: It seems to me that the economics theoretical background behind the Business Modelling of
Osterwalder-Pigneur is a weird mix. I believe it is a melange of several key elements of the Austrian
School of Economics (associated with its founder Menger, Von Wieser and Bohm-Bawerk) with a touch
of the rigorous older Historical German School of Economics (associated with Roscher and Hildebrand).
L´École
économique de
Lausanne
Older German
Historical School
The Austrian
School
This is the economics foundation of
Osterwalder-Pigneur Business Model Canvas
23/02/2024
Source References: See slides 24-25.
Eleonoraescalantestrategy.com All rights reserved 2016-2024
HEC Lausanne, the Alma
mater of Osterwalder, is
the affiliated business
school of the University
of Lausanne.
Why does this matter?
Source References: See slide 12.
7
Value Propositions: Theory and Cases.
For Osterwalder-Pigneur the definition of value proposition is a legacy of a specific line of
economic thought from Germany-Switzerland-Austria that has evolved to our days.
The Original German Historical School of Economics and the Austrian School of Economics were in
contradiction of the Classical Economics from Britain. Let´s explore the main important points of classical
economics.
The Classical Economics
The British School
Represented by economists whose thought derived largely from Adam Smith´s
“The Wealth of Nations” (1776).
Motto: Laissez-faire, or “let people do as they wish”.
These economists favored economic growth through competitive freeenterprise
The society is a group of fortuitous concurrence of individuals whose
competitive efforts met consumers´ demands in the marketplace
The mechanism of the marketplace should govern most economic decisions
The government must maintain a sound currency, enforce contracts, protect
private property, impose low tariffs and taxes, and leave the rest to the private
sector.
Source Image: https://fee.org/articles/3-great-greatdepression-cartoons/
The state should maintain enough army to protect the nation´s economic
structure and foreign trade
Main representatives: David Ricardo (1772-1823). A Dutch-born London
Stockbroker, and Thomas Malthus (1766-1834)
23/02/2024
Source References: See slides 24-25.
Eleonoraescalantestrategy.com All rights reserved 2016-2024
8
Value Propositions: Theory and Cases.
For Osterwalder-Pigneur the definition of value proposition is a legacy of a specific line of
economic thought from Germany-Switzerland-Austria that has evolved to our days.
The Original German Historical School of Economics gave birth to the Austrian School through Carl
Menger. We see it as if the Austrian School was the effort to keep the economic thought of Central Europe
out of the radical influence of Carl Marx, and out of the effect of the excesses of the Prussian Nationalistic
thought. In the meantime, Britain was booming, but poverty of the lower class continued.
The Austrian School of Economics
The Austrian School started with Carl Menger technical observation against the Classical view
of the labor theory of value. His concept of “marginal utility” disrupted the notion that the
price of a good or service comes from the value of labor.
Carl Menger, the founder of the Austrian School was part of the trio of marginal
revolutionaries (Jevons-British, Walras-French Swiss and Menger-Austrian) that came
independently to each other, with a new theory: the framework of the intersection of demand
and supply curves. This setting was plainly an abstraction and theoretically in character.
The Austrian school is a radical subjectivist line of the Neoclassical marginalist economics. It is
subjective because reduces all goods and factors to the subjective valuation of consumer
goods made by the client.
It is a “pure” a priori theory, with an emphasis on “methodological individualism”
Source Image: Public domain
It implies a time-theoretic approach to capital and interest. It emphasizes on uncertainty and
information in the economy
Finally, it is concerned with the psychology of economic actors, particularly the supremacy of
strategic, self-interested behavior when facing other interests (social, political or government
institutions).
23/02/2024
Eleonoraescalantestrategy.com All rights reserved 2016-2024
Source References: See slides 24-25.
9
Value Propositions: Theory and Cases.
For Osterwalder-Pigneur the definition of value proposition is a legacy of a specific line of
economic thought from Germany-Switzerland-Austria that has evolved to our days.
The Original German Historical School of Economics emerged as of the 1830s: Partly Hegelian in
philosophy, with some influence from Friedreich List; but mainly post-Kantian.
The German Historical School of Economics
The German Historical School explicitly rejected economics as practiced by the
British Classical School.
It relied on empirical and inductive reasoning. Human Social Constructions
systems were the result of history, not something that could emerge by reason, or
speculation or diligent legislation
Historical facts and induction from those facts must be considered when studying
economic behavior, and this should be cross-disciplinary (history, sociology,
politically and economically).
The Original Older School founders were Wilhelm Roscher at Leipzig, Karl Knies at
Heidelberg and Bruno Hildebrand at Jena.
The Younger German Historical School emerged in the 1870s with Gustav
Schmoller as its most remarkable leader, after the German unification of Bismarck
Otto von Bismarck plays Chess
against Pope Pius IX – Rome.
Illustration from 19th century. Public
domain
The Younger Historical School claimed that economics should be a normative
discipline and engaged for use by policy makers and further industrialization, at
the State guidance.
23/02/2024
Source References: See slides 24-25.
Eleonoraescalantestrategy.com All rights reserved 2016-2024
10
Value Propositions: Theory and Cases.
For Osterwalder-Pigneur the definition of value proposition is a legacy of a specific line of
economic thought from Germany-Switzerland-Austria that has evolved to our days.
The Lausanne School of Economics refers to a Neoclassical School of thought originated by Leon Walras
(French-Swiss), followed by Vilfredo Pareto.
The Walrasian Lausanne School of Economics
The central feature of the Lausanne School was its development of the General
Equilibrium Theory. This school is also referred as the “Mathematical School of
economics”.
Leon Walras (1834-1910) was the founder of this school, and a leader of the Marginalist
Economic Revolution of the 1870s, and he was a teacher at the Academy of Lausanne,
Vaud, Switzerland. Walras mathematized the abstraction of Menger.
The Lausanne School moved into a different direction with Pareto (1848-1923), who
focused on the micro foundations of general equilibrium systems, economic decision
making of households.
Paretians continued with the efficiency and social optimality: relationship between
demand and consumer preferences, and between production and profit-maximizing
behavior of firms.
Further in the 20th century, despite the efforts to revive the Lausanne legacy, the
Marshallian, and Keynesians strengthening economics also demolished the European
academic establishments (which were reduced to ashes by the Nazis.
23/02/2024
The original Lausanne Walrasian School of thought has been up and down. Nowadays,
there are some traces that you can find under the Neo-Austrian School.
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Source Image: Public domain
11
Value Propositions: Theory and Cases.
Let´s understand who was who during the beginnings of the German School of Economics.
The German Historical School of Economics initial journey has been categorized in three main generations: The
Older, the Younger and the Youngest. Let´s see who were the main representatives.
Older
First
Generation
Younger
Second
Generation
Wilhelm G. F.
Roscher (1847-1894)
Bruno Hildebrand
(1812-1878)
Gustav Von Schmoller
(1838-1917)
Karl G.A. Knies
(1821-1898)
Lujo Brentano
(1844-1931)
Ernst Engel
(1821-1896)
Lorenz Von Stein
(1821-1898)
Adolph H.G. Wagner
(1835-1915)
Johannes Conrad
(1839-1915)
Youngest
Third-Last
Generation
Werner Sombart
(1863-1941)
23/02/2024
Source References: See slides 24-25.
Arthur Spiethoff
(1873-1957)
Max Weber
(1864-1920)
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Adolph Lowe - Kiel
School (1893-1995)
12
Value Propositions: Theory and Cases.
Let´s understand who was who at the Austrian School of Economics
The Austrian School of Economics emerged around 1871, exactly when the German Empire was united under
Bismarck.
First
Generation
Carl Menger
(1840-1921)
Eugen Von BohmBawerk (1851-1914)
Friedrich Von Wieser
(1851-1926)
Eugen Von Philippovich
(1858-1917)
Second
Generation
Ludwig Von Mises
(1881-1973)
Joseph Shumpeter
(1883-1950)
Alfred Amonn
(1883-1962)
Hans Mayer
(1879-1955)
Third
Generation
Currently there
is a 4th and 5th
Generation too
23/02/2024
Friedrich Von Hayek
(1889-1992)
Oskar Morgenstern
(1902-1977)
Gottfried Von Haberler
(1900-1995)
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Fritz Machlup
(1902-1983)
13
Value Propositions: Theory and Cases.1/2
Let´s understand the context of the origin of the German Historical School: The 19 th century.
The three generations of the German Historical School representatives breathed a specific domestic and
international context of events that shaped their own views about historical economics. Great Britain
position was predominant during the Victorian century.
Germans were watching how Britain was expanding through
the “laissez faire” Classical economics framework. The 19th
Century was for “the” prevailing British Victorian Era, a
moment in time in which Great Britain was leading the way in
the world.
What was occurring in the British Empire then?
• England was consolidating its international colonies and world trade,
particularly of Southern Asia.
• It was leading the model of an industrial society, firstly with the textile
production, then with iron manufacturing, ship building, and postmercantilist commerce all over the planet.
• The migration from the rural countryside to the urban town dwelling put
pressure in housing, public infrastructure and sourcing of food supply to the
cities. Crime augmented, and the emergence of police and prison reform.
• The shift from craft artisan self-employment to factory labour workers
(called proletarianization)
• Classical economics dominated Britain: Malthus on population policies,
Ricardo on Wages, Bentham on utilitarianism. Marx wrote the Communist
Manifesto in exile, in London (1847), with Friedrich Engels.
• The transportation systems began using coke from plentiful coal supplies. A
rail network was built, opening the national market for goods
23/02/2024
https://commons.princeton.edu/mg/empires-and-patterns-of-world-trade-1880-191
Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
14
Value Propositions: Theory and Cases.2/2
Let´s understand the context of the origin of the German Historical School: The 19 th century.
The three generations of the German Historical School representatives breathed a specific domestic and
international context of events that shaped their own views about historical economics.
What occurred in Germany when facing the international development
of Britain?
• Great Britain was leading the age of European Imperialism. With the French
Revolution and Napoleonic dealings; the Bourbons were busy, meanwhile the
Habsburgs were switching their survival to America.
• In general, during the 19th century, the German unification was the most important
political development between 1848 and 1914
• Before the Napoleonic Wars, Germany consisted of over 300 states loosely bound
under the branding of the Pope, the Holy Roman Empire. Napoleon dissolved the
empire, replacing it with the new Confederation of the Rhine, excluding Austria and
Prussia (1815).
• When Otto von Bismarck (1815-1898), the Prussian Chancellor, engineered a war
against Austria in 1866, the old German Confederation was dissolved, and he unified
the German-Prussian empire with more territories after the Franco-Prussian War
(1870-1871).
• A new State, the German Empire was in place in North Central Europe: militarily
conservative, with a new federal constitution, respecting each German state with
some powers, but with a clear robust strategy of consolidation through nationalism.
• The German unification fortified the strong tradition of the State that could plan the
new German Empire economic growth.
• The German Historical School representatives (Older and Younger groups), insisted
then that the British traditional economic classical theories of Smith, Malthus and
https://commons.princeton.edu/mg/the-unification-of-germany/
Ricardo did not suit Germany´s strategic plan, and this is the context in which the
Historical School began.
23/02/2024
15
•
Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
Value Propositions: Theory and Cases.
Let´s understand the context of why the Austrian School of Economics was born.
It wasn´t only a philosophical economics research method conflict, it was also a political-economic issue
between Austria and Prussia, and how Austria reacted to a possible “influx of socialism ideas in the German
Historical School”.
Karl Menger von
Wolfensgruen
(1840-1921)
Gustav Von
Schmoller
(1837-1937)
https://picryl.com/m
edia/gustav-vonschmoller-by-nicolaperscheid-c19081465d3
https://geschichte.univie.ac.at/en/
persons/carl-menger-vonwolfensgruen
The Austrian Empire (1815-1866)
https://utorontopress.com/9781487523312/historical-atlas-of-central-europe/
23/02/2024
Source References: See slides 24-25.
Eleonoraescalantestrategy.com All rights reserved 2016-2024
16
Value Propositions: Theory and Cases.
Let´s understand what was happening in Prussia and Austria when the Methodenstreit ocurred.
What was the political territorial context in the 19th century, at the time of the Methodenstreit between
Schmoller (German) and Menger (Austrian)?
Gustav Von
Schmoller
(1838-1917)
Prussia
Austria
• 1806 - The French Empire under Napoleon
conquers much of Germany.
• 1813 - Napoleon is defeated at the Battle of
Leipzig in Germany.
• 1848 - German philosopher Karl Marx publishes
The Communist Manifesto which would be the
basis for Marxism and communism. In parallel to
this publication, the revolutionary upheavals
invaded Austria, Central Germany and Prussia
simultaneously.
https://picryl.com/m
• 1862 - Otto von Bismarck is elected Prime
edia/gustav-vonMinister of Prussia.
schmoller-by-nicola• 1871 - Germany defeats France in the Francoperscheid-c1908Prussian War. The German states are unified and
1465d3
the national parliament, called the Reichstag, is
established.
• 1882 - The Triple Alliance is formed between
Germany, Austria, and Italy.
• 1848: The revolution revolts of 1848 reached
Vienna, Budapest, Lombardy, Venice and the
Hungarian territories. All were controlled by
Austrian authorities, with exception of Hungary.
• In 1849, Austrian emperor Franz Joseph (r. 18481916), requested help to the tsarist Russian
armies, and the Hungarian “war of liberation”
was smashed.
• Krakow was incorporated to the Austrian Empire
in 1848, into the province of Galicia
• 1859: Sardinia-Piedmont declared war on
Austria, a year later, all that region was lost and
incorporated into the Kingdom of Italy
• 1866: Prussia reassured a new North German
Confederation. Austria lost influence in the
Germanic states of Saxony, Thuringia and others.
• 1867-1914: Ausgleich, A dual monarchy known
as the Austro-Hungarian Empire began.
23/02/2024
Source References: See slides 24-25.
Eleonoraescalantestrategy.com All rights reserved 2016-2024
Karl Menger von
Wolfensgruen
(1840-1921)
https://geschichte.univie.ac.at/en/
persons/carl-menger-vonwolfensgruen
17
Value Propositions: Theory and Cases.
Now that we have understood the three school of economics, let´s comprehend the
economic thought of the Value Proposition Canvas.
The Value Map
23/02/2024
The Customer Profile
Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
18
Value Propositions: Theory and Cases.
When utilizing the Osterwalder Canvas, are we privileging a specific reasoning: inductive or
deductive? What do you think?
Let´s look at the original bifurcation between two models of economic thought
German Historical School-GHS
Schmoller (2nd Generation-Younger)
Economic History- Empirical/Inductive
The Austrian School of Economics-ASE
Menger (Founder)
Economic theory-Abstract/Deductive
Schmoller followed the philosophy of the older historical school
(represented by Roscher, Hildebrand and Knies).
He was consequently aware that a rapid industrialization of society must
be accompanied by a policy of social reform if revolutionary upheaval were
to be avoided.
Menger confronted the methods of the historical school and claimed that
history without theory could not lead to progress in economics. Menger
argument denied that historical economics could lead to a “better theory”.
The historical school defended history, realism and induction. INDUCTION
from FACTS
The Austrian school defended theory, abstraction and deduction.
DEDUCTION from THEORY
World view: Nationalistic, collectivist outlook, empiricist based on history
facts as a model
World view: Cosmopolitan, individualistic outlook, theorist
Schmoller opposed economic liberalism and socialism in equal measure
with the ability to see that the idea of a nation state that could utilize the
scientific empirical methods. Cameralism played a decisive role in
Schmoller.
Menger ultimate goal was to make a clear distinction between the
historical and statistical study of economic forms. For Menger the prime
task of economic analysis should be the elaboration of theory and policy,
not the accumulation of economic facts
Schmoller critique to Menger was that the level of theoretical abstraction
based on unrealistic assumptions, and by ignoring relevant empirical facts,
many theories should be discarded.
Menger critique to Schmoller was its historicism. The practical work of
Menger at “The Grundsätze”, was concerned in the marginal value theory,
using the concept of subjective value. Here, historicism is understood as
justifying history as an empirical discipline capable of objective knowledge
For Schmoller, the methological nationalism should be tied to scientific
economics consisted of generalizations from historical monographs.
General economic propositions emerge from detailed historical studies for
the practical domination of reality.
For Menger, the methodological individualism should be coming from the
choices made by individuals, no matter the reason: consumers would
purchase additional producto until the extra Benefit (or marginal utility) of
the last item acquired was equal to the Price.
23/02/2024 Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
19
Value Propositions: Theory and Cases.
For Osterwalder-Pigneur the definition of value proposition is a legacy of a specific line of
economic thought from Germany-Switzerland-Austria that has evolved to our days.
The Austrian School of Economics of today has evolved through the last 150 years.
•
•
•
The German Historical School members trained and
groomed the majority of the first economists that
opened the field of Economics and Business
Administration in the USA.
The Austrian School members continued their impact
through the London School of Economics (LSE), NYU,
and other American Universities.
What do we have now? A mix of everything
Is the entrepreneur
the king of the
Marketplace, or is it
the customer?
23/02/2024
Source References: See slides 24-25.
Eleonoraescalantestrategy.com All rights reserved 2016-2024
20
Value Propositions: Theory and Cases.
What is the connection the Analyzed Schools of Thought and the customer value
proposition?
• The CVP of Osterwalder-Pigneur is the most neo-classical interpretation and practical Menger abstraction recipe of
the “subjective” marginalist economics – Austrian School. The psychology of an individualism, self-interested behavior
of customers when deciding to buy.
• The CVP of Osterwalder-Pigneur fulfills the Roscher, Knies-Hildebrand (Older German Historical founders) quest for
historical development of the wants, needs of people; where goods´ prices are not determined by the cost of
production, but by deciphering patterns found in massive economic data from the past.
• The CVP of Osterwalder-Pigneur also involves the Walrasian/Pareto applicability of the mathematical approach.
Eleonora Escalante Strategy
23/02/2024 Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
21
Value Propositions: Theory and Cases.
What is the connection between the Analyzed Schools of Thought and the customer
value proposition?
Certain geopolitical alliances never fade
away. Can we extrapolate it to the faculty
of economics and business modeling? Is
it possible now in the XXI century?
I don´t have an answer yet.
•
•
•
•
In 1881 the German Chancellor, Count Otto von
Bismarck, generated an alliance with Russia and
Austria-Hungary, known as the "Three Emperors'
Alliance" - a move intended to keep
France isolated. To counterbalance this alliance
with Russia (a country that might more
realistically be seen as a threat), Bismarck also
entered a "Triple Alliance“ of Germany with
Austria-Hungary and Italy in 1882.
Britain was seen as behemoth empire by the
Germans.
The Germans felt that unless they acquired a large
and profitable empire they would eventually be
left behind by their giant rivals: Russia, the British
Empire and the United States.
23/02/2024 Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
22
Value Propositions: Theory and Cases.
What is the connection between the Analyzed Schools of Thought and the customer
value proposition Osterwalder-Pigneur?
When we start the development of the customer value proposition with a methodological subjective
individualism…
•
•
•
•
•
The paradigm of the Austrian School of Economics sets the
main protagonist as the creative entrepreneur, with all
his/her subjectivities.
Any entrepreneur is and will make errors by using an
unscientific and non-historical approach. These mistakes are
corrected on the way. If the business model has a global
impact, it causes enormous damage to the most vulnerable
economies.
By not defining, nor testing the CVP with an integral DBR
(Design Based Research), when implementing the business
model, the marketing strategy may manipulate the
customers, creating a collusion between the customer,
suppliers and the enterprises, artificially affecting the supplydemand, and creating gigantic networks of micro
entrepreneurial monopolies at the concentrated
marketplaces (as Amazon).
The current technological/communications media helps to
create this collusion automatically.
The manipulation is so insane, that no economic school of
thought is able to keep up any prediction.
When the marketing strategy of the
omnipresent value chain players
manipulates the decision of the
customers, who is really the king? Do
you think is still the consumer?
23/02/2024 Source References: See slides 24-25. Eleonoraescalantestrategy.com All rights reserved 2016-2024
23
Value Propositions: Theory and Cases.
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23/02/2024
Eleonoraescalantestrategy.com All rights reserved 2016-2024
24
Value Propositions: Theory and Cases.
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23/02/2024
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25
Our next publication
is about the
Customer profile.
Gains and Pains.
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