Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.

Value Net Model

Editor's Note: Take a look at our featured best practice, Digital Transformation Strategy (145-slide PowerPoint presentation). Digital Transformation is being embraced by organizations across most industries, as the role of technology shifts from being a business enabler to a business driver. This has only been accelerated by the COVID-19 global pandemic. Thus, to remain competitive and outcompete in today's fast paced, [read more]

* * * *

The Value Net Model is a strategic framework developed by Adam Brandenburger and Barry Nalebuff, leveraging their expertise in economics, business strategy, and game theory. This model is crafted to enhance understanding of the competitive environment of organizations, transcending traditional competitive analyses by focusing on both competitive and cooperative interactions among various market players. This holistic approach enriches strategic thought and practice, encouraging organizations to navigate complex business landscapes more effectively.

The model identifies 4 key types of players:

  1. Customers
  2. Suppliers
  3. Competitors
  4. Complementors

Each player type holds strategic implications for organizations, influencing their operational and strategic decisions.

The Value Net Model is invaluable as it provides organizations with a more comprehensive view of their competitive landscape. This framework aids in identifying and leveraging both competitive forces and cooperative opportunities, thus fostering innovation and strategic thinking beyond conventional competitive strategies. By recognizing the interconnected nature of these relationships, organizations can develop more robust strategies that account for the dynamic interactions between different players. This not only helps in achieving competitive advantage but also promotes sustainable business practices by integrating cooperation into the competitive strategy.

A deeper dive into the first 2 elements—Customers and Suppliers—reveals their critical roles:


Customers are the driving force behind an organization’s strategic direction, influencing product development and market positioning. Successful organizations prioritize customer-centricity, utilizing feedback to adapt and innovate swiftly, thus maintaining a competitive edge.


Suppliers, on the other hand, provide essential resources and can significantly impact cost structures and production quality. Effective supplier relationships are foundational to managing costs and enhancing product quality, which in turn supports competitive pricing and market differentiation.

To illustrate the practical application of the Value Net Model, consider these 3 case studies:

  • Amazon: By implementing the Value Net Model, Amazon has fostered a collaborative ecosystem, enhancing its relationships with small vendors and third-party sellers, which has driven growth and customer satisfaction.
  • Technology Company: A leading technology firm used the Value Net Model to identify synergies with software complementors, leading to bundled offerings that enhanced customer value propositions and drove market expansion.
  • Automotive Manufacturer: An automotive manufacturer leveraged the model to better understand its competitive dynamics, leading to strategic partnerships with suppliers of key technologies for electric vehicles, which helped them stay competitive in a rapidly evolving industry.

FAQs on the Value Net Model:

  • What are the core benefits of the Value Net Model?
    The model helps organizations identify potential cooperative relationships in addition to competitive ones, allowing for a more comprehensive strategy that incorporates both aspects.
  • How does the Value Net Model differ from traditional models like Porter’s Five Forces?
    Unlike traditional models that focus mainly on competition, the Value Net Model also considers cooperation, providing a more holistic view of the business environment.
  • Can the Value Net Model be applied to any industry?
    Yes, its principles are universal and can be adapted to any industry where understanding the interplay between different types of players can benefit strategic positioning and operational efficiency.

The Value Net Model is a robust framework that equips organizations with the tools to navigate both competitive and cooperative landscapes, promoting a strategic approach that can adapt to the complexities of modern markets.

Interested in learning more about the Value Net Model? You can download an editable PowerPoint presentation on the Value Net Model here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

Excel workbook
Accountants, accounting firms, and real estate property owners can all benefit from this cost segregation study (CSS) template. It makes the estimated benefit easy to figure out and has flexible assumptions for high level or detailed segregation analysis. You get a summary of cost [read more]

Readers of This Article Are Interested in These Resources

Excel workbook
This Private Equity Profit Distribution Waterfall Model allows for the distribution of funds between the Limited Partners ('LPs') and the General Partner ('GP') for investment or private equity funds. This detailed model covers all the relevant concepts used in private equity cash [read more]

103-slide PowerPoint presentation
Excel workbook

About Mark Bridges

Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.

, , , , , , , , , , , , , , , , , , , , , , , , , ,

Complimentary Business Training Guides

Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function






The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.

Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com

Acquisition Strategy
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
Change Management
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hoshin Kanri
ISO 27001
Information Technology
Innovation Management
Integrated Financial Model
Key Performance Indicators

Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Lean Manufacturing
M&A (Mergers & Acquisitions)
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management

Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Risk Management
Robotic Process Automation
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety

Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy

© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.