Applying Stabell and Fjeldstad's Value Configurations to E-Commerce: A Cross-Case Analysis of UK Comparison Websites

This paper analyses the comparison website sector in the UK using what Stabell and Fjeldstad (1998) term the three generic value configurations: the value chain, the value shop and value network. Drawing on secondary material and case studies from the United Kingdom, the key finding is that these frameworks all offer partial explanations of value creation in comparison websites. An amended version of the value chain termed the click chain, outlined by Laffey (2009), is most effective in explaining the source of online traffic for comparison websites and in explaining their costs and revenues. This is an important finding as the literature has identified the value chain as being of limited relevance outside of the manufacturing sector. In addition the value shop offers insights into how the sector deals with more complex products such as mortgages and life insurance, whilst the value network helps to explain the growth of comparison websites. The paper also suggests how this framework can be used for e-commerce markets in general before it concludes.