The Value Proposition (#141)
/In this podcast episode, we cover the value proposition that a business presents to its investors. Key points made are:
The value proposition is the theme of the business; it describes the intrinsic value of the entity.
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.
Get rid of low-value operations that interfere with the value proposition.
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.
You can fiddle with the value proposition to associate it with a higher-value market niche.
Paying attention to the value proposition can greatly increase the stock price of the company.
A muddled value proposition can reduce the market value of a business, so getting it right makes a great deal of sense.