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What Is Value Migration?

Value migration refers to the shifting of value-creating forces within industries, often driven by technological innovation, changing customer preferences, and competitive dynamics. As companies adapt to or lead these shifts, value flows from outdated business models to those that better align with current market demands. How does this phenomenon affect your favorite brands? Join the conversation to see the impact.
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum

Value migration is a type of marketing approach or strategy that focuses on the task of discerning what a customer needs and then developing a new product or adapting an older product that will meet those needs. This approach makes it possible to anticipate changes in the needs and wants of customers and be prepared to meet those needs as they arise. In the process, the company is able to shift or migrate to a newer way of doing business that keeps the operation relevant to what is happening in the market now and in the future.

There are several benefits associated with value migration. Gaining and maintaining a competitive advantage is one of the most common advantages arising from using this type of marketing strategy. By constantly thinking of where consumer demands and preferences will move next, it is possible to stay ahead of competitors, sometimes seizing business opportunities and creating a presence before others begin to notice a newly developing avenue to a niche audience. This type of value migration is especially pronounced when a company is able to project the popularity of an emerging technology early on, and adapt its products for use in that new technology. An example would be paper companies who made copy paper in the middle 20th century but envisioned the advent of the desktop computer and home publishing, and adapted their product lines to meet those needs before those markets actually began to grow.

Businessman giving a thumbs-up
Businessman giving a thumbs-up

Another benefit of value migration is the ability to make use of an established and trusted brand to enter into new markets with relative ease. Drawing on consumer confidence in the brand, it may be possible to attract attention in newer markets and successfully compete with emerging companies in those markets. Doing so is especially important when demand for the older products offered by the business are in decline due to changes in consumer tastes or the advent of new technology that renders the older products obsolete. This approach can mean that if a company was once known for manufacturing high-quality typewriters, creating a new line of netbooks and handheld devices bearing that same brand name may increase the chances of capturing a significant amount of market share.

The process of value migration can make it possible to take advantage of opportunities that may have not been viable in years past. International air travel paved the way for entertainment companies to create and provide options such as music, movies or even rebroadcasts of television shows to passengers during an extended flight. More recently, the adaptation of certain types of software to run on several different types of operating systems means the ability to reach more consumers and increase the manufacturer’s bottom line, simple because those products can provide value to a wider range of consumers.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Learn more...

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