The Eco $ Ave Project

1388 Words6 Pages
In the following essay I will critique the claim that The ECO$AVE project presents a useful value proposition and also present a brief evaluation of opportunities or otherwise, facing the ECO$AVE entrepreneurs. Value proposition is identical as competitive differentiation. It 's the basis on which customers would purchase a company 's product or service as contrasting to another 's. If the company can put it through clearly and the customers and employees agree that it 's correct, then the company is in business. And if the company isn 't able to come up with a good one, then it will likely experience the slow, excruciating loss of share in the market and erosion of margins in profit. A value proposition is composed of a two-sided equation of value, a differentiated customer value and an incremental shareholder value. The delta between the two is the performance of the financial services firm and its ability to seize market opportunities. Half of the equation is defined as the utility of the product to a consumer, which determines the value of the product offering (customer value). This value is market-driven and often is not based on costs-plus accounting, but on market forces. The second component is shareholder value, described as the difference between the value of a firm’s output realized in total revenues, attributed to selling the financial services product offerings, and the cost of the input of raw materials, components or services that the firm adds to its
Open Document