The company meets the needs of clients by creating values for them. Value can be defined as the product itself, its individual elements (for example, the logo on the car's hood) and/or the related service. In short, value is everything the buyer is willing to pay for, and free items of commercial offer that encourage the customer to choose it. We will talk about values in the relevant chapter. But here we will define that the ability to create a distinctive value (a value which other market players cannot duplicate or outdo) determines a company's success. Marketers would call such a value a «competitive advantage», but I do not like this definition, as it again leads us away from the consumer (see Jeff Bezos quote above).
Customers' values are created by the company using sources of value - assets. This is a broad concept that includes both tangible assets such as buildings, machinery, cars, etc., and intangible assets - brand, know-how, unique expertise, software development, etc. We will also talk about them separately.
If the company understands the consumers' needs, if it is able to create unique value for them by effectively using assets, it can create long-term profit or market capitalization. Since profit is a very painful subject, it deserves a separate chapter. So far, I will give only a brief definition of profit, how it should be understood in commercial organizations, in my opinion: Profit is a bonus to a company's shareholders and employees, which is earned from consumers when a company creates value to cover consumers' needs.
So what is «doing business» in my opinion? Business is the organized activity of covering customers' needs by creating customers' values. Values are created by using assets. Business results in capitalization. It is based on mission, company's values and vision.
So, I have made it with thirty words. We'll talk about all of this in detail in the following parts.
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by Svyatoslav Biryulin "KPIs that will kill your business".