Value proposition dynamics in response to external event triggers

Abstract

In light of recent calls for adopting a dynamic perspective on value propositions, this paper investigates value proposition dynamics - i.e., strategic moves made by firms to further develop and/or change their value propositions - in response to external event triggers. External event triggers are disturbances emitted from the macro-environment that challenge the status quo of one or more market actors and/or the industry in which they are embedded. This paper provides a framework that describes the characteristics of external event triggers as well as the elements and strategic dimensions of value proposition dynamics. The relevance of this framework is illustrated by exemplars and case vignettes from the accommodation industry with regard to two external event triggers: human trafficking awareness and the COVID-19 pandemic. We conclude with a guide for practitioners on how the value proposition dynamics framework can be used to increase their firm’s ability to survive and thrive.