Value Proposition
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Consumers are divided into separate groups, with representatives of which the company can build relationships aimed at the implementation of values in different ways. For example, these can be niche or premium segments, mass-market, etc. Separate blocks of customer acquisition channels and sales organization are also distinguished.
In the second case, we are talking about methods of generating leads and forming product delivery channels that meet the needs of different segments of the target audience in terms of cost, speed, and efficiency. The category of customer relations by methods of attracting them also includes methods of retaining them. For example, providing a personal consultant with the possibility of personal communication via mobile communications, via messenger, in the company's office, etc. Here, various methods can be used that involve consumers in the process of value formation (for example, users creating content on social networks).
Finance
This group describes the sources of job seekers data package income and the structure of business expenses (investments, variable and fixed costs). The channels for obtaining profit are determined based on the business model used. In addition, sources of income may differ for different products and target audience segments: sales, rent, license, mediation, advertising promotion, etc.
After compiling a description of the company using the "business model canvas" method, an understanding of the main product of the business and the areas of activity for its creation appears. Further, in order to reveal what exactly the main goods or services are and how the value offered to consumers will be created, it is necessary to use another tool, which is what our material is devoted to. We are talking about the "value creation chain" - VCC.
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The concept of the value chain
The value chain is a business model that describes the entire range of activities involved in producing a company's product. Some sources also call it the "value chain" or "added value chain". For a company that produces certain products, the VSC will contain a description of all production stages, from concept creation, raw material procurement, marketing, and up to the distribution stage.
Harvard Business School professor Michael E. Porter presented a conceptual description of the value chain in business in his work "Competitive Advantage: Creating and Sustaining High Performance". According to the scientist, it is impossible to understand the competitive advantage of a company by looking at its entirety, since it is provided by numerous separate areas of activity at the stages of development, creation, promotion, delivery and service of the product.
Therefore, it is necessary to ensure maximum value at every individual stage of business processes.
In the conditions of high competition for providing the end customer with the most favorable price, enterprises need to organize constant monitoring of the created value. Only in this case can they not lose their advantages in the long term.
Michael Porter's value chain is an effective tool that a company can use to identify inefficiencies in its own business. Then, based on this information, it can develop strategies to optimize production processes for maximum efficiency and profitability.
In addition, to ensure that the company's value creation activities are smooth and effective, it is necessary to ensure that consumers develop a sense of security and confidence at a level that will make them loyal. A CSP analysis can help with this.