BU353 Lecture Notes - Lecture 2: Value Proposition, Corporate Social Responsibility, Starbucks
Document Summary
If you don"t have a competitive advantage, don"t compete. A business strategy has four components the product-market investment decision, the customer value proposition, the organization"s assets and competencies, and functional strategies and programs. Examples of value propositions: superior attribute of benefit (bmw), appealing design (ipod), offering a complete systems solution (ups), social responsibility (avon), superior customer relationship (nordstroms) specialist niche (victoria secret) superior value (walmart) Most businesses may select more than one value proposition - and most do. Keep this number to a few, since having too many isn"t feasible or credible. too thin and confused customers. Business strategy challenges whether it contains a real and perceived value proposition and whether it is feasible, relevant and sustainable. No more than 2 or 3 because too many = resources stretched. Each value proposition should be challenged with respect to. Must add value to the customer more likely to be real if it is.
