by Aminat Abubakar
A value proposition is a statement that tells the audiences what your brand of products or services has to offer. It shows how your products or services would provide a solution or improvement to customer problems. It highlights the benefit, and reason why the customer should buy from you and not your competitors.
Osterwalder & Pigneur, explains the value proposition “as the benefits customers can expect from a company’s product and services” (2010, p.2). A proper value proposition is important at the initial stage of a startup set up by the entrepreneur who must define and evaluate as the foundation of the business success. “It is part of the business plan, of the marketing strategy and defines the future customer relationships” (startany, 2015). The value proposition focus should be on the customers’ needs and the value the product or service brings to the customers. It defines the business model of the company, the way it creates and generates revenue, as well as draws and maintains customers to the business products or services. Investors are concerned and scrutinize the value propositions of startups businesses they are interested in investing their funds.
Ewing Marion Kauffman Foundation (2007) provides values a startup gains with a compelling value proposition:
- Create a strong differentiation between you and your competitors.
- Increase not only the quantity but also the quality of prospective leads.
- Gain market share in your targeted segments.
- Improve your operational efficiency.
- Increase your revenue.
- Ensure that everyone in your company communicates the same message.
While incorporating the customers’ needs in building a value proposition, there is also a need to create a corporate value proposition culture. Corporate value proposition culture “Articulates how your organization’s building blocks and your engaged employees create and drive value – not only through your own organization but also into your customers’ organizations” (Haken, 2016).
Our value proposition at ELDAMOH Management Strategy Consultancy (n.d.) is to empower organizations looking for opportunities to increase their performances in the area of their businesses. Our team of specialists provides service to clients to resolve problems innovatively, develop, and implement plans through new trends, and train in order to empower their businesses. ELDAMOH Management Strategy Consultancy employee value proposition is ‘We invest in you, to make an impact with integrity’.
An organizational culture that encourages and invests in learning, allows for employee creative independence in the workplace, attracts talent and less employee turnover. Such an environment allows for career growth and development, as well as motives creativity and innovative thinking. Employees are developed with skills and knowledge to think of new ways to help solve clients’ problems. They are able to face challenges innovatively and are motivated to go out of the industry to gain insight into customer needs and new trends. They are able to collaborate with partners and take ownership and responsibility for their actions. Employees are empowered with the knowledge and skills to reliably solve problems and provide solutions to customer needs. They are not afraid to take a risk.
A company’s value proposition is a reflection of how it delivers products or services to its customers and attracts new customers in the marketplace against competitors. It is also a reflection of how it engages its employees, retains, and attracts valuable talents.
What do you think?
ELDAMOH Management Strategy Consultancy. (n.d.). Our Value Proposition. Retrieved from https://eldamoh.com/value/
Ewing Marion Kauffman Foundation. (2007, March 19). Value Proposition. Retrieved from https://www.entrepreneurship.org/articles/2007/03/value-proposition
Haken, B. T. (2016, February 17). What’s Your Corporate Culture Value Proposition? Retrieved from https://babettetenhaken.com/2016/02/17/whats-your-corporate-culture-value-proposition/
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, NJ: John Wiley & Sons, Inc.
Startany. (2015, August 11). The Importance of Value Proposition For The Success of Every Startup. Retrieved from http://www.startupist.com/2015/08/the-importance-of-value-proposition-for-the-success-of-every-startup/