VALUE INNOVATION

Value Innovation: The Strategic Logic of High Growth

Value Innovation: The Strategic Logic of High Growth

Question 1:

Value proposition

What is Value Proposition?

It is a promise of delivering value and having the customers trust and believe that they will get to experience it. The proposition of value may be, applied to complete or part of organizations, accounts of customers, products and services. Creation of value proposition is a marketing strategy of businesses. Norton and Kaplan have said that the strategies based on varying customer's value proposition. Satisfied customers and clients are the sources of sustaining value creations.

Development of value proposition is, based on the reviewing, analysing of the cost, benefit, and value that organizations deliver to customers, potential clients and other essential groups such as the stakeholders of a company whether they are from within or external parts of the organization. It depends on where and how value is, positioned (Kim & Mauborgne, 1996).

How can it help entrepreneurship?

Someone who innovates uses finance and his or her business insight to transform innovation into goods making the individual an entrepreneur is one who does entrepreneurship. Organizations run by these entrepreneurs use value proposition for positioning value to multiple constituents. It assists in explaining to customers why they should buy a specific product from the supplier. It helps in persuading partners to forge strategic alliances and ventures done in partnership. The internal department influences the outcomes of decisions of business. Employees are to sell the idea of the company when hiring new employees or to either retain or motive existing workers, known as Human Resource value proposition or value proposition of employees. Suppliers find it easier to explain to a business or customer why they should deal with them (Rackham & Vincentis, 1999).

Examples of new value proposition, namely the application of the ERRC

Newness of a product gives it value proposition. You do not miss something until introduced to it, giving it value proposition. If your value proposition is newness, that means you have introduced the market with a newer technology, invention and your product if unique and does not fit into a category. Performance is a value proposition if the product that is being, improved on is already in the market, however the new version is bigger, better and faster.

Customization shows that the business knows their customers and the technology or product designed is specifically for the customer keeping their requirements in mind. Another example of value proportion is getting the task done right which comes in play if the product or service provided was able to enhance the productivity of the customer and had a 100 percent success rate. Functionality is a value proposition if the customer is satisfied with its usability and design. Price is a value proposition as long as it is in balance with the value and the product justifies its price. Reducing the cost, reducing risks for companies such as the job of an insurance company, accessibility and convenience and brand of the company along with their ...