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MBA executive – University / Innovation / Big companies and their value proposition

April 22, 2014 0 Comment

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There are 3 kinds of value proposition (Anderson et all, 2009, pp. 93):
1. all benefits – listing all of the benefits customers receive from a market offering, which can be easily achieved and doesn’t really take any sort of customer insight (firm needs knowledge of their own market – doesn’t need customer insight – can be completed quickly);
2. favourable points of difference – All favourable points of difference a market offering has relative to the next best alternative (i.e. points of parity, difference and contention);
3. resonating focus – All favourable points of difference a market offering has relative to the next best alternative (knowledge of how own market offering delivers superior value to customers, compared with next best alternative);
Business model innovation involves creation of a "value proposition" that offers to satisfy the same or different customer needs in new ways. By performing the function, solving a problem, or creating and experience through the sale of innovative products and/or service. We can target a selection of customers whose needs are best met by the product or service by offering them a value proposition, which is different to other organisations.
What type of benefits should we include in a value proposition (innovation) to our customers that will get them coming in our front door?
Read the article – given/attached.
Introduction: Reflect and discuss: Customer expectations and value proposition of firms which are looking for innovative products and services
Especially ‘big companies’ struggle to create innovative products and services. Name and give examples and highlight ‘real cases’.
What do they need and looking for? Name their value proposition. (Academic view.)
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