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prada eyeglasses frames 2012 customer seeks. Example: GE's Magnetic Resonance Imaging MRI machines come with consulting programs, operating training, and a patient preparation program a package that ensures that the machines will meet the hospital's performance expectations.Big IdeaWhere Do You Fit In?Think of product value as a grid. The left axis defines what you sell: Does your firm offer stand alone products, or do you specialize in offering an ongoing set of services? The top axis is about your core value proposition: Does your offering compete largely on the basis of how much it costs, or does it offer features that make it unique? The more sophisticated your product gets, the more you can charge for it relative to the competition. Similarly, the more value your services provide, the more you can charge for them.Lowering your prices = Changing manufacturing and distribution.To beat low price competitors at their own game while also remaining profitable, you need to squeeze every last drop of inefficiency and cost from your manufacturing and distribution system. Example: If your competitor has outsourced its manufacturing to China, consider outsourcing your manufacturing to Vietnam, where costs are even lower.Building a uniquely better product = Changing design and engineering.Determine through market research what features or design will prompt customers to see your product as being unequivocally superior to the competition. Then get engineering to build it. Example: If you're launching a line of "designer" handbags, find out what fabrics and leather provide a look and feel that potential buyers view as "upscale."Creating a hassle free experience = Changing sales and marketing.Figure out why it's difficult to buy and use your competitor's product, and then make it easy to buy and use yours. Example: Pioneer recently offered giant console TVs for sale at Home Depot, because many customers often already had a truck in the parking lot that they could use to haul the bulky item home.Taking ownership of the customer's results = Changing customer support.Build a deep bench of experts who really understand your customers' businesses. Example: Under Lou Gerstner, IBM hired and retrained thousands of