The Value Proposition (#141)
/In this podcast episode, we cover the value proposition that a business presents to its investors. Key points made are:
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The value proposition is the theme of the business; it describes the intrinsic value of the entity.
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When you have multiple divisions, it can make sense to split the business apart and assign different value propositions to each one, to maximize the total value of the business.
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Get rid of low-value operations that interfere with the value proposition.
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You need to consider the value proposition when making tactical decisions, since each one contributes to how well the business is perceived as matching its value proposition.
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You can fiddle with the value proposition to associate it with a higher-value market niche.
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Paying attention to the value proposition can greatly increase the stock price of the company.
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A muddled value proposition can reduce the market value of a business, so getting it right makes a great deal of sense.