Value Proposition
Your customers are the judge, jury and executioner
of your value proposition.
They will be merciless if you don't find one!
Alexandre Osterwalder
The only valid definition of a business purpose:
to create a customer.
Peter Drucker
Initially, Porter ( [Porter01] ) and with him many scholars strongly criticised the concept of Business Model arguing that it was ill-defined and not bringing any novelty to the field of strategic management. Business Model was one of these buzzwords that became prevalent with the Internet boom in the late 90’s. As stated by Joan Magretta ( [Magretta02] ) :
„a company didn’t need a strategy or a special competence or even any customers – all it needed was a web-based business model that promised wild profit in some distance”.
However the concept has gained momentum and although it does not replace any strategic management framework, it offers an effective way to describe what a company does, how it does it and why it can yield any profit (or not).
