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What Role Do Value Propositions Perform in Successful Business Models?Value propositions describe the fundamental attraction that brings the consumer closer to the product or service being offered by that business. These propositions represent the specific offers and features of the product by providing a deeper sense to thevalue that product offers to the consumer. In developing a robust value proposition, many2
BUSI 690-D06: Business Model Generation Exercise 1factors such as price, placement, distribution, size of market and market share articulate the company’s value and motive within the industry (Payne, 2014). The maturity of the market also plays a huge role into developing these factors; whereas markets that are theirformative stages of production and development. Markets in these stages present opportunities for value propositions to strengthen the market they exist in, thus, aiding in the organizations rise in profit.Value propositions exist as the underlying factors consumers base a product or service’s value and worth upon, ultimately, determining where the customers choose to spend their money. This model’s building block summarizes the products and services into categories that represent their value in the organization’s infrastructure. Each value proposition consists of a selected bundle of products that caters to the requirements of a specific customer segment (Osterwalder & Pigneur, 2010). On the flip side, the customer benefits from the exclusive deals and offers that constitute the product in hopes of its success in the marketplace at its time of release. Some value propositions may be innovative and represent a new or disruptive offer, while others may be similar to existingmarketplace offers, substituted with bonus features or incentives (Osterwalder & Pigneur,2010). Companies benefit from this model’s implementation due to its focus on the