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how each value network exhibits a very different rank-ordering of important product attributes, even

for the same product. In the top-most value network, disk drive performance is measured in terms of

capacity, speed, and reliability, whereas in the portable computing value network, the important

performance attributes are ruggedness, low power consumption, and small size. Consequently, parallel

value networks, each built around a different definition of what makes a product valuable, may exist

within the same broadly defined industry.

Figure 2.2 Examples of Three Value Networks

Source: Reprinted from Research Policy 24, Clayton M. Christensen and Richard S. Rosenbloom,

“Explaining the Attacker's Advantage: Technological Paradigms, Organizational Dynamics, and the

Value Network,” 233–257, 1995 with kind permission of Elsevier Science—NL, Sara Burgerhartstraat

25, 1055 KV Amsterdam, The Netherlands.

Although many components in different systems-of-use may carry the same labels (for example, each

network in Figure 2.2 involves read-write heads, disk drives, RAM circuits, printers, software, and so

on), the nature of components used may be quite different. Generally, a set of competing firms, each

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