Study of Industry Level Bargaining Power: Quest for Value Capture Versus Value Creation
Strategic management literature has been dominated with the notion of value creation. However, in the new world of platform based economies value capture has become pivotal along with value creation. The author in this article presents five narratives to emphasize the importance of value capture along with value creation. The author builds on the theoretical concept of bargaining power in industry analysis. Bargaining power with respect to both suppliers and customers was considered. The author applied argumentative logic based on theoretical perspectives to ascertain the point of view, that value capture should be prioritized by firms as a strategic goal rather than value creation.