Strategy tradeoffs in the knowledge and network economy
Business Strategy Review; Oxford; Spring 2001; Oystein D Fjeldstad;Knut Haanaes;

Volume:	12
Issue:	1
Start Page:	1-10
Page Count:	0
Document Type:	Feature
Source Type:	PERIODICAL
ISSN:	09556419
Subject Terms:	Studies Tradeoff analysis Strategic management Value added
Classification Codes:	9190: United States 9130: Experimental/theoretical 2310: Planning
Geographic Names:	United States US
UMI Article Re. No.:	BSR-2020-1
UMI Journal Code:	BSR

Abstract:
In traditional "value chains" firms, the main activity tradeoff is between differentiation and low cost. Increasingly, however, firms are creating customer value through networks or by providing knowledge-based solutions for customers. This article discusses the quite different activity tradeoffs faced by these "value networks" and "value shops". It then explores the tradeoff between exploitation and exploration. Finally, in reviewing the implications for managers, it discusses the problem of trying to manage different types of business within the same corporation.