Advantages Of Value Proposition Canvas

Customer profitability was a determinant used for segmenting and targeting, studies were done on customers’ likes, dislikes and types of products they would benefit from and models were developed to determine their propensity to buy.

In order for a firm to create competitive advantage, it needs to create a set of activites that can deliver value to the specific product and services it offers to its customers. To start talking about my life as a “value chain”, I may need to compare it to a specific product”. This is going to take precedence both in my personal life and professional life.

From a business standpoint, the business model canvas is easy to use and it comes in different forms of software. Start-up businesses can use the model in a variety of ways. The business model canvas can help them determine who their customer base will be and aid them in finding out how to reach them. In today?s business world, competition is everywhere. A start-up business must be able to be competitive in order to succeed. Finally, a start-up business must be able to understand the competition and where they stack up against them.

4-13: Developing a business model before writing business plan is essential because it adds more details to the evaluation of a new business begun during the feasibility analysis by graphically depicting the “moving paths” of the business and ensuring that they are all working together. Also, when building a business model, the entrepreneur address

“If we don’t have customers we don’t have a job” (Mcknight & Booth, p. 26, 2010). In any organization the customer’s expectations must be known and met, and if at possible expectations should be exceeded. To be able to meet customer expectations, it is important to understand what the customer is expecting. When an organization takes the time to understand the customer’s needs, they will find their customers are unique and there is not a one size fits all approach to meeting customer’s needs.

Value proposition is how a company summarizes in a business statement why consumers should buy their product or service. It’s how they persuade and target potential consumers. For satellite radio in particular there are multiple components to their value proposition. The first component is that they provide a wide range of channels such as music, sports, news. Another component is the channels will offer specific content from formats that includes VHI, MTV, ESPN, BBC, etc. The last component is it provides channels that are free from commercial. Sirius provides 50 commercial free channels (all of their music channels) while XM has around 20.

A value proposition is composed of a two-sided equation of value, a differentiated customer value and an incremental shareholder value.

The (RCC) / VC model is used to determine how Best Buy bundled its resources to create capabilities and how these capabilities become the company’s core competencies which will be their source of competitive advantage.

Value Proposition illustrates why a target consumer should choose to buy or consume a product or a service over other alternatives, and which makes a customer confident that this product or service will add more value and benefits to him or better solve his problem than other similar offerings.

A company’s business model is defined as, “management’s blueprint for delivering a valuable product or service to customers in a manner that will generate ample revenues to cover costs and yield an attractive profit” (Thompson, 2012). Video Concept’s business model is based on providing value to its customers through high quality service, the ability to reserve videos, and its free home delivery. Video Concepts’ profit formula revolves around using its $1.99 rental price per night to generate revenues and increase its market share.

Briefly identify who your ‘customer’ is likely to be. Why is it important for a business to understand its customers?

The research draws much attention to value as an important relationship with the customer and supplier, generated together through its value-chain, how it is the cumulative work of the organisation that equals the value of the product and or service to the customer. The product/service is just one

The strategy of a successful organization lies in attracting the right customers by differentiating themselves from competition. Customer value proposition (CVP) is the essence of that strategy (Noreen, Brewer, & Garrison, 2014) which helps the company to deliver value aligned with the organizations strategy to its targeted customers. Customers therefore infer that product as high value while purchasing and perceives that this value creates a reason for him or her to choose it over a competitor in the industry. Customer Value proposition states the reasons a customer may want to purchase a particular product or use a particular service, i.e. it emphasizes on the added value a particular brand has got that fulfills customer’s needs better. The “value” is the benefits that the company delivers to its customers through their product and service. Top level do not base their value proposition based on the promise to “deliver all the benefits” to its target customers the reason being that delivering too much benefits can dilute genuine points of difference (Anderson, A.Narus, &Rossum, 2006). Therefore successful companies have fewer elements (benefits) in their value proposition those of which that matter the most to their targeted customers.

• Provide optimum value to the customer through a complete value creation process with minimum waste in:

The first two refer to a consumer’s inclination to certain actions that and not related to the market place. The third refers to the consumer’s behaviour while in the act of purchasing a product.