The Role of Strategy in Management

Companies strive to produce a unique product or service that will give them an advantage in the marketplace. But this produces competitive advantage only if customers perceive the difference and understand why this difference matters to them. A value proposition is a statement that a company uses to convince customers that its product or service provides more value to them than a competitor's product or service. The value proposition communicates to the customer the main reason a product or service is the one best suited to their needs.

The value proposition is communicated through a company's webpage, advertising, or social media. It should have a bold headline or graphic that grabs attention and depicts the benefits delivered to the customer. This brief "announcement" can be followed by a short paragraph or a few bullet points that list the key features of the product.

An excellent example is the value statement for the Apple MacBook. It shows an edge-on image of a MacBook with the caption "MacBook: Light. Years ahead". This very cleverly conveys the important distinctions of the MacBook. First, it's a really slick design. In the edge-on view the computer almost disappears. Second, it is light. In the laptop market, weight is important. Both the image and the statement emphasize that the MacBook is easy to carry around. Finally, it emphasizes MacBook's advanced technology, "Light years ahead". In a very small space, Apple conveys the main differentiators for the MacBook – its weight and its advanced technology.