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About: Value proposition     Goto   Sponge   NotDistinct   Permalink

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A business model is a critical element for any startup success as it is what unlocks value in the long-term. In a way, developing a business model isn't only about monetization strategies. Indeed, that is way more holistic. To develop a business model companies need to create value for several stakeholders. Thus, a business model it is about what makes users go back to your app, service or product. It is about how businesses can get value from your solution. It is about how suppliers grow their business through it. A business model is all those things together. In short, when those pieces come together that is when you can really say to have a business model. And value proposition is one of the critical aspects of a business model. What is a value proposition? A value proposition is a promise of value to be delivered and a belief from the customer that value 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 "Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.