Value relates to the benefits that a customer obtains from a product or service.
The value chain model is another useful model for business strategy analysis.
It can be argued that in business, the most important objective for success should be to add value better than competitors.
Creating value for customers will, over the long term, create more value for shareholders.
Since adding value is critical to the success of a business entity, it should be important to identify how it creates value, where it is creating value and whether it could do better (and create more value).
The entity’s success in creating value can be compared with the performance of competitors.
Who is doing better to create value for customers?