The importance of focus for generating customer value

Abstract

A carefully chosen customer value proposition (CVP) is essential to create customer value. Both value creation from the customer and the corporate viewpoint gain from consistent and deliberate focus on key market segments and core competences. The result is a mutual exchange of value, thus stabilising and strengthening the competitive position in the market. Conversely, failure to maintain a consistent focus puts value creation at risk, and potentially causes one's competitive position to break down. System Theory offers a useful framework to integrate value creation from both the customer and the corporate perspective.