Value Creation And Value Creation

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The name itself says, Value Creation, is a simple term defined as increasing the company value product by working on its relational factors. There are many factors in the company which influence the value of the product and is directly proportional to the profits with proper marketing and sales etc. Practically when a business is earning profits then there is a value in the products developed. Value creation is dependent on various aspects like quality, innovation, type of product etc. Price and cost are the main components to determine the value of the product. Cost of production in making the product as the revenue crossing the cost of production is the margin of the product and if the profit is more than the marginal profit then it is considered…show more content…
Relation between competitive advantage and failure.
Reason for this is pretty straight forward, if there is no extra mileage to disembark in the market which will slowly terminate it to the failure process. This is mainly because of the ignorance of the current market situations failing to focus on the criteria’s which can be a blocker to the improved success of the organization. Even after the failure, sometimes it will be very helpful for an organization to rectify the mistakes in identifying and balancing the capabilities of the organization.
Strategies are prepared for the business of the company. The below functional strategies are used in improving the effectiveness of the company’s operations.
1) Efficiency 2) Quality 3) Innovation 4) Customer
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For superior profitability successful products are necessary. There are reasons for failure rate and the solutions for reducing the failures. Poor strategy is one of the main reason which mainly depends on picking up the products on the price and distribution structure and features as well. The other main reasons would be because of the poor marketing strategy which will result in low commercial
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