e3value user manual, first release

6.3 Net value flow analysis for a market segment

Figure 6.3 shows a value network with two market segments. The numbers given for a market segment are averages for the actors in the segment. There are 1 000 000 Travelers with on the average each 10 needs for a train trip. There are 2 Railway companies which sell on the average 10 000 000 / 2 = 5 000 000 train trips.

Tables 6.3 and 6.4 show the net value flow sheets for individual actors in the market segments. Each Railway company has on the average f70K fixed expenses in the market scenario and f34 per sale of a trip. Plugging in these numbers gives is a net value flow of f57 930 000 per Railway company. With a market of this size, providing train trips is profitable.

Travelers valuate a train trip on the average at f210 and the average trip price for the two Railway companies is f200. The net value flow for Travelers is on the average f100.

Figure 6.3:A Traveler and a Railway company as market segments.

Table 6.3:Net value flow sheet of the Railway companies market segment of figure 6.3.
Expenses
Total for actor
Market segment size







Interface

Port

Transfers

Transfer occurrences

Valuation

Total value transferred

Net value flow








Money, Train trip

5 M

58 M

in: Money

all

5 M

15

75 M

out: Train trip

all

5 M

0

0

out: Train trip

Expenses

5 M

34

-17 M








-70 K















57.93 M








2








Table 6.4:Net value flow sheet of the Travelers market segment of figure 6.3.
Total for actor
Market segment size







Interface

Port

Transfers

Transfer occurrences

Valuation

Total value transferred

Net value flow








Train trip, Money

10

100

in: Train trip

all

10

210

2100

out: Money

all

10

200

-2000















100








1 M