Value Proposition Strategy (VPS) is a prominent concept in marketing. This theory revolves around the essence of the value that a product or service brings to customers. VPS is not only about the distinctive features of the product but also about how it addresses customers’ needs and desires most effectively. In a recent study by Porter and Kramer (2011), they emphasized the role of quantitative values, indicating that companies applying VPS could increase sales volume and enhance profitability. However, despite the many benefits VPS brings, it also faces limitations, such as the potential to generate higher prices compared to competitors.
However, although VPS can enhance a company’s competitiveness, not all companies implement it effectively. According to Woodruff’s research (1997), integrating quantitative values into business strategy requires sensitivity and deep understanding of customers and the market. Some businesses may not meet these requirements, leading to ineffective VPS deployment or even adverse consequences.
Nevertheless, the significant potential of VPS cannot be denied. Kim and Mauborgne’s study (2005) revealed that developing a unique VPS could create a sustainable competitive advantage for a company. By creating unique and uncopyable value, businesses can attract and retain customers more effectively. This is evidenced by many leading companies worldwide such as Apple and Nike, which have succeeded in building strong VPS, helping them garner customer loyalty and achieve leading positions in the industry.
In conclusion, the value proposition strategy is not just an abstract concept in marketing but also a crucial tool to help businesses drive sales and build competitive differentiation. However, to apply VPS effectively, companies need deep insights into customers and the market, as well as the ability to create unique and uncopyable value. Only then can VPS truly become a decisive factor in their business strategy.
