Abstract

Nowadays, in the competitive passenger transport market, customer value is the key to retain customers and solidify market share. Value creation and improvement is a competitive strategy for all kinds of business to gain competitive advantage in the market. Value chain analysis is commonly used to configure value creation activity and procedure for their business. For service business, the elements of their value creation model have something different from manufacturing business. Value chain may not be effective for every business. This study proposes the value shop model to be another value creation analysis model for most service business and introduce the service blueprint as a value creation analysis tool to configure and reconfigure the value creation model for service business to gain competitive advantage. A railway company in Taiwan is the empirical case to demonstrate the configuration of value creation model and improve the customer value through reconfiguring the service blueprint.

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