5-D Value at Leading Companies

In numerous industries (see above and below), one or more companies primarily generate value in each of the four conventional value dimensions. This indicates that in each industry there is a range of customer preferences across the spectrum of the value dimensions, i.e. each value dimension represents a substantial share of customer preferences. Furthermore, it suggests that offering value in a dimension is indeed the basis for success, because in each value dimension at least one company is successful in addressing the associated customer preferences. 
Not shown here are the handful of companies exhibiting the new fifth dimension of value Deep-Connect including BMW, IKEA, Patagonia, Tesla, Unilever, Walmart and the White Arena Group in the Laax ski resort in Switzerland.
The structure of each industry shows one or a few companies in each dimension of value. This structure can be explained as follows using the diagram just above. In a given industry, within each of the four conventional value dimensions one or a few companies generate value with a greater relative appeal than rivals. These dominant companies in each value dimension rise above the industry median, prevent entry and drive rivals in the same dimension down and even out of the market. In the competition within a value dimension, one or a few companies come to dominate the industry in that value dimension. The competition between companies in different value dimensions depends on the relative popularity amongst customers of the value offers in the different dimensions: e.g. is Degree value more popular than Dexterity, and if so, by how much?

The diverging competitive fortunes of dominant and dominated companies in an industry is documented for the European automobile market in the third chapter of The Complex Diversity of Mastering 5-D Value Management at BMW, Daimler, Fiat, PSA, Renault and Volkswagen. These six European auto companies rose to dominance over the past 50 years in the course of two waves of consolidation. The firms emerged from shakeouts in the six largest national markets which occurred largely in 1960s – 1970s, quantified for each national market. The companies then expanded around the turn of the century in the course of the second consolidation at the European level.