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2. Value Propositions

The Value Proposition is foundational to any business/product. It is the fundamental concept of the exchange of value between your business and your customer/clients. Generally, value is exchanged from a customer for money when a problem is solved or a pain is relieved for them by your business.

An organization’s value proposition is the combination of products and services it provides to its customers. Osterwalder stated that these offerings need to be unique and easily differentiated from competition. Value propositions can be divided into two categories:

  1. Quantitative: this stresses the price or efficiency of the product or service.
  2. Qualitative: this value proposition highlights the experience and results of the product and its use.

The value proposition provides value through several attributes such as customization, performance, “getting the job done”, brand or status, design, newness, price, cost and risk reduction, accessibility, as well as convenience or usability.

When creating the product’s value proposition, the first question an entrepreneur must ask themselves is, what problem he is solving through his offered product or service. Then one needs to investigate how the product, service or overall experience can be improved so that it provides greater value than the competition. Finally, it is imperative to identify the core value that your business provides. One way to identify this value is for an owner to specify what he/ she wants customers to remember about their interaction with the company.

The basic questions you must answer in this category are:

What do you do? What core value do you deliver to your audience? Which needs are you satisfying? Which one of your customer´s problems are you helping to solve? What products or services are you offering to each customer segment?


Question 1

offer must be unique and easily distinguishable from competition

Question 2

the value is provided with brand, design and price

Question 3

competition is not interesting for us