Value Creation Model

The Value Creation Model explains how a business generates value for both itself and its customers. It involves activities like developing products or services, improving efficiency, and understanding customer needs. By doing these, a business creates offerings that meet or exceed customer expectations, leading to customer satisfaction and loyalty. This, in turn, drives revenue and profits for the company. The model emphasizes understanding various factors—such as cost, quality, and innovation—that influence the creation of value, helping businesses strategically optimize their processes to deliver maximum benefits to customers while sustaining their own growth.