Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 07.2015
Revision date: 29-Jan-2016
Length: 11 pages
Data source: Field research
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Abstract
This is the first of a two-case series. iMotors was an online used car retailer. Its business model reconfigured the industry value chain and allowed it to create significant new value for consumers. The case highlights the tension between value creation and value appropriation, limits to growth and the importance of establishing legitimacy in creating new categories. It also raises the question of the sustainability of competitive advantage.
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Abstract
This is the first of a two-case series. iMotors was an online used car retailer. Its business model reconfigured the industry value chain and allowed it to create significant new value for consumers. The case highlights the tension between value creation and value appropriation, limits to growth and the importance of establishing legitimacy in creating new categories. It also raises the question of the sustainability of competitive advantage.