...which is a chain of value-adding activities of an organization.
Most companies go through a production, marketing, sales, logistics and service process.
When you take a closer look at this chain, you'll be able to find your client's needs.
Let's take an example.
Rolls-Royce, the world's second largest aircraft engine manufacturer,...
...analyzed one of its clients.
The value chain of airline companies start with aircraft purchase,...
...then flight scheduling, seating sales and marketing, actual flight and maintenance.
First, Rolls-Royce focused on flight scheduling.
Because engines are machines, they need to be replaced after a certain number of uses.
As a result, airlines always need to have spare parts in hand.
However, with fewer flights during the off-season,...
...engines are not used much and most end up in storage.
Rolls-Royce realized that airline companies didn't want to waste money...
...by having extra engines in storage.
So, Rolls-Royce met its client needs by renting out the engines instead of selling them.
It also found the needs of airline companies in the maintenance part of their value chain.
Flights were interrupted by sudden engine problems.
As such, Rolls-Royce began offering maintenance services.
When a problem arose, it quickly dispatched its professionals.
As a result, Rolls-Royce saw a jump in market share from 27 percent in 1999...
...to 34 percent in 2009.
