Joachim Marie
Exploring the Demand-Side Strategy: a Value Creation Perspective

Customers’ empowerment through digital means of communication and the connectedness entailed, allow for the emergence of new modes of value creation, looking at the demand-side. Creating more value in use for customers enables managers to construct strategies in light of the demand’s needs, and ensuring the firm’s economic performance. To better understand this phenomenon, this paper intends to understand managers’ actions to conceive and implement demand-side strategies. In this regard, we conducted a qualitative (secondary data and interviews) multiple cases study based on 6 firms implementing such strategy. Based on data analysis, we bring three main theoretical contributions: first demand-side strategies enhance firms’ performance by empowering managers to design better value propositions. Second, considering the constant interaction with customers, is at the core of demand-side strategy, value should no longer be apprehended as a chain but as a dynamic system, connecting different stakeholders. This would foster firms to rethink customers as a partner, redefining the organization’s boundaries within this value system. Lastly, our study sheds light upon the clarification of the concepts of value creation and value capture in strategic management. To top it all, our paper brings to managers a toolkit for demand-side strategy definition and implementation.