Value Proposition for an existing or new product or service
Every business is set up to achieve two major things throughout its
existence and these are i. To make profit and ii. To grow. When these two major
things are met then the organization is on its way to success.
Value proposition is all about a promise of value to be delivered
and a belief from the customer of value that will be experienced. A value
proposition can apply to an entire organization, or parts thereof, or customer
accounts or products or services. Creating a value proposition is a part of
business strategy. Kaplan and Norton say about Strategy, that it is based on a
differentiated customer value proposition. And satisfying customers is the
source of sustainable value creation.
Developing a value proposition is based on a review and analysis of
the benefits, costs and value that an organization can deliver to its
customers, prospective customers, and other constituent groups within and
outside the organization. Value proposition is also a positioning of value,
where Value = Benefits – Cost (cost includes risk).
