Rule 3: Value Chain Control

Neither preemptive distribution nor neurological connection with consumers would be possible without a business having total control over its value chain. The value chain includes where value is created and by whom, and where and how it’s marketed, including ultimate point of sale. These stages combine to create a never-ending, fully integrated virtuous cycle of value chain control, starting with the consumer, pausing at the point of consumption and then starting all over again. The cycle is comprised of three continuous and simultaneous steps: define, develop and deliver.

Total control of the value chain doesn’t necessarily mean owning every function in the chain. Although production and distribution will most likely be shared, the retailer, wholesaler or service provider must have dominant control over all parts of the value chain.

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