The New Dynamics of Competition

Subject: Business Controversies
Pages: 1
Words: 317
Reading time:
2 min
Study level: College

The given paper focuses on the concept of the Value Capture Model (VCM). Ryall (2013) states that the VCM defines competition as a tension between the value that a firm takes from interactions with specific agents and the value that it could have obtained from other agents. This concept implies that there is only “one force of competition that works transparently in multiple directions,” meaning that one should consider how agents compete for a firm and vice versa (Ryall, 2013, p. 83). An example of this mutual relationship can be found on the webpage that can be accessed via this link (

On the one hand, it is possible to mention that Amazon competes for its clients because it offers decent customer service. It refers to personalized emails and recommendations that are provided to customers. They imply that Amazon analyzes individual search histories and behaviors to ensure that users are provided with relevant suggestions. This step has a probability of increasing the company’s sales and revenues. On the other hand, agents also compete for Amazon, and Prime, the company’s membership program, makes it possible. This action provides individuals with essential benefits, including one-day delivery options, video and music streaming, and others, which makes multiple people pay subscription fees. Amazon members gain a competitive advantage over other customers because the company offers better service to Prime participants. Consequently, this information depicts how a single force of competition works in multiple directions, offering advantages to all parties.

Furthermore, one can admit that Amazon is an example of a firm that focuses on a competitive intent. It is so because the organization draws attention to its services, products, and innovations (Ryall, 2013). That is why financial consulting companies, IT firms, and other service businesses represent organizations that focus on a competitive intent. Finally, the paper has demonstrated that the Value Capture Model can be applicable and beneficial for these businesses.


Ryall, M. D. (2013). The new dynamics of competition: An emerging science for modelling strategic moves. Business Harvard Review, 80-87.