With the increased global competition and rapidly changing market dynamics, customer value co-creation is becoming an integral aspect of the contemporary companies ( Prahalad & Ramaswamy, 2004). Principally, it involves collaboratively creation of values between the producers, customers and other chief stakeholders where one entity has a direct access to the resources that it integrates in specific context other than in exchange ( Agrawal, Kaushik & Rahman, 2015). The previous impact of value co-creation is evidently felt in the market place with the organization utilizing such approaches already exhibiting higher inter-organization cooperation and superior production ( Thiruvattal, 2017). This paper argues that value co-creation is not a mere fad. It is a force of the present and future whose impact is likely to be sustained for long.
The future relevance of value co-creation is based on its current impact on different organization across different industries. One of these industries is the logistic industries ( Thiruvattal, 2017). The use of co-creation in the logistic industries is found to have a positive impact on customer loyalty and hence tend to increase it. Application of co-creation is therefore more likely to increase as different organization are increasingly adopting it as a means of coping with the current and anticipated stiff competition in the market. It is therefore a trend for the future ( Prahalad & Ramaswamy, 2004).
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Value co-creation is closely supported by the rapidly advancing technology and disruptive innovation characteristic of the current marketplace. Previously, value co-creation was significantly hampered with physical and situational limitation ( Agrawal, Kaushik, & Rahman, 2015). However, with the current and the future growth in technology and disruptive innovation, co-creation as a competitive tool is likely to increase in utility. More business are empowered to access and use technology that allows hyper connection with the customers hence facilitating the process of co-creation that in turn results into superior productivity ( Prahalad & Ramaswamy, 2004). In conclusion, customer value co-creation is not a fad but a trend that will change the future of value creation.
References
Agrawal, A. K., Kaushik, A. K., & Rahman, Z. (2015). Co-creation of social value through integration of stakeholders. Procedia-Social and Behavioral Sciences , 189 , 442-448.
Thiruvattal, E. (2017). Impact of value co-creation on logistics customers’ loyalty. Journal of Global Operations and Strategic Sourcing , 10 (3), 334-361.
Prahalad, C. K., & Ramaswamy, V. (2004). Co‐creation experiences: The next practice in value creation. Journal of Interactive Marketing , 18 (3), 5-14.
