Value Proposition

775 WordsMar 4, 20114 Pages
Value Proposition Your value proposition can equip you with the following benefits to your business: * Create a strong differential between you and your competitors * Increase not only the quantity but the quality of prospective leads * Gain market share in your targeted segments * Assist you in enhancing tools that will help you close more business * Improve your operation efficiency iPod vs. Other MP3 Players - As early as 1996 MP3 players were available to the public for purchase. For the first few years the only real value aside from price comparisons were the amount of music they could store. This started to change when Apple Inc. launched into the market with the new iPod player, which was coupled to iTunes…show more content…
They would have done some market research. NPV * A corporation must decide whether to introduce a new product line. The new product will have startup costs, operational costs, and incoming cash flows over six years. This project will have an immediate (t=0) cash outflow of $100,000 (which might include machinery, and employee training costs). Other cash outflows for years 1–6 are expected to be $5,000 per year. Cash inflows are expected to be $30,000 each for years 1–6. All cash flows are after-tax, and there are no cash flows expected after year 6. The required rate of return is 10%. The present value (PV) can be calculated for each year: Year | Cash flow | Present value | T=0 | | -$100,000 | T=1 | | $22,727 | T=2 | | $20,661 | T=3 | | $18,783 | T=4 | | $17,075 | T=5 | | $15,523 | T=6 | | $14,112 | * The sum of all these present values is the net present value, which equals $8,881.52. Since the NPV is greater than zero, it would be better to invest in the project than to do nothing, and the corporation should invest in this project if there is no mutually exclusive alternative with a higher NPV. Ansoff matrix Strengths: *  Economic climate *  Agriculture and textile Pakistans economic strengths have traditionally come from agricultural products, with important cash crops being citrus, rice and cotton. Textiles
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