Defining Your Business Model: Value Proposition and Delivery PPT

This PPT slide, part of the 50-slide Business Unit Strategic Plan Training PowerPoint presentation, presents a structured overview of a business model, focusing on 2 core components: the value proposition and the value delivery system (VDS). The value proposition section emphasizes the importance of understanding customer desires, selecting the target audience, and defining the benefits and pricing strategy. This foundational knowledge is crucial for segmenting the market effectively, ensuring that the value proposition aligns with customer expectations.

The VDS is divided into 2 main functions: providing value and communicating value. To provide value, businesses must design products or processes, procure or manufacture goods, distribute them, and offer services. Pricing strategies are also highlighted as a key element in delivering value. On the communication front, the slide underscores the necessity of crafting a compelling sales message, alongside advertising and promotional strategies to effectively convey the value proposition to the target audience.

A critical takeaway is the assertion that each business unit must address 2 specific issues to refine their business model. First, they need to illustrate how the value proposition will be delivered and communicated. Second, they must identify existing strengths that can be leveraged, as well as the capabilities that need to be developed to stand out in the chosen value delivery system. This dual focus on delivery and communication is essential for ensuring that the business model is not only coherent, but also actionable and aligned with strategic objectives.

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Strategy Development Example Business Unit Strategy Pricing Strategy Value Proposition Sales