Six Paths Analysis
Kim and Mauborgne have developed a structured approach to finding new value curves. This formal process for assisting analysts to explore the most likely approaches to new value curves is called Six Paths analysis:
Path 1 - Look across industries.
Glamour Fashions will conduct some research and see whether we can compete with substitutes for their product rather than with direct competitors.
Path 2 - Look across strategic groups.
Competitors in an industry tend to cluster into groups of firms with the same business model and very similar value curves. Innovators can often avoid direct competition by positioning themselves between these groups. I think Glamour Fashions might need to consider combining the high quality branded clothes with more forgiving styles that ordinary people could wear to create a unique and profitable position.
Path 3 - Look across the chain of buyers.
Firms often sell through distributors and other intermediaries that sit between them and their ultimate customer. Other players may influence the sale without actually handling the product. This constellation of customers and influencers is called the 'chain of buyers'. It can often be effective to sell further downstream in the chain of buyers, creating 'pull' for the products. Glamour Fashions may think about transforming the market by selling not only to males and females of the specific age but to older population as well.
Path 4 - Look across complementary offerings.
Innovations can be found by looking at the whole system or process within which the customer uses a product or service. What are the customer's problems? What might we add to provide a complete system or solution? Glamour Fashions should do a thorough research and figure out some innovative system either directed towards customer care or delivery of clothes.
Path 5 - Look across functional or emotional appeal.
New value curves can often be found by adding emotion to a product that is normally sold on functionality and price. Glamour Fashions, instead of emphasizing on fashion and beauty, will think about making its products more functional, which can result in some cost savings.
Path 6 - Look across time (trends).
Powerful trends can be the source of new value curves. Glamour Fashions can ride the trend towards looking stylish and appealing to general population with the help of high quality clothes from famous designers that will make people feel better and be proud of them.