Value Addition and Value Creation Essay

890 Words4 Pages
WINNIE WAMBUI KARUMBA 643502 BUS1010 ASSIGNMENT ONE WINNIE WAMBUI KARUMBA 643502 BUS1010 ASSIGNMENT ONE VALUE CREATION AND VALUE ADDITION INTRODUCTION: Value addition and value creation influence business greatly. The way a business adds value to itself, the more the customers it will get and the more it will grow. The more the value a business creates, the OBJECTIVE: To explain in my own words what I understand by the terms value addition and value creation. This has been defined and illustrated more on the points below. POINTS: Value addition Value addition is an increase in the value of a resource, product or service as the result of a particular process. Value in a business can be added differently in order to make one’s business successful. Making one’s business successful is by attracting more customers in order to enhance growth of a business through making profit. One way is by increasing the speed you deliver the kind of value people are willing to pay for. This is because everybody is impatient. Also, by offering better quality goods and services than your competitors at the same price. This is in order to win more customers hence increasing your profit. This can be done by finding out what your customer wants and giving it to them faster than your competitors. Nevertheless, by adding value to everything you do. This enhances a business to acquire more customers hence leading to better profit than their competitors. If everyone is offering the same thing, then these factors of the product or service becomes the basic minimum, or the expanded norm in the market. You can also add value through planned discounting. It involves finding ways to sell higher and higher volumes of products and services to more and more people at lower prices. Through giving discounts people will want to go for your products
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