Life and Lessons for and by next CEOs

Academia, Strategic Management

Value Creation

History of business has taught us that, in order for a business to be successful, it has to deliver Economic value. It has to deliver something of value that another person is willing to pay for. In other words; It has to have a socially accredited form of value.

Value creation can take the form of any or a combination of the following twelve value offerings:

Selling a tangible object that has a demand, and produced internally or tasked to be produced.
Selling benefit by means of an action, based on a skill that is in demand.
Selling a product at the viable and sustainable profit margin that was pre ordered and an inexpensive price and possibly in bulk.
4.Shared Resource;
Selling the use of a resource which can be shared by many clients concurrently without diminishing each clients experience.
Selling benefit on an ongoing bases and billing for the benefit on a reoccurring basis.
Selling the temporary use of an asset on favourable terms.
Selling the value of another business to and established or sourced client base for an agreed upon fee.
8.Audience Aggregation;
Selling access to an targeted, aggregated and established audience at an agreed fee structure.
Selling a guaranteed option for an agreed action in the future.
Selling the transfer of risk for an agreed series of payment based of a risk assessment analysis.
Selling the loan of money for an agreed upon interest rate.
Selling capital investment into business for an ownership stake in that business.

(Adapted from: Forms of Value – Josh Kaufman)

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