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CUSTOMER VALUE PROPOSITION

What is this practice and how effective is it?

Customer value propositions help leaders decide which strategic position to take. There are three classic value propositions: product leadership, operational excellence, and customer intimacy. Companies need to focus on one of these and ensure that their processes and metrics underpin them. But few firms do this well, leading to strategic confusion and poorly aligned processes. We will look at how the best organizations have clearly defined value propositions and how they use them to beat the competition.

Alternative names and related topics: market strategy; customer value analysis; market segmentation

Michael Porter’s work focused on two basic strategic positions: ...

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