VALUE PROPOSITION

• Value Proposition are applied to everyday life

• A value proposition describes why a customer should buy a product or service.

• A value proposition is a statement of the unique benefits delivered by your offering to

the target customer

• It targets a well-defined customer segment

• It convinces prospective customers that a particular product or service will add more
value or better solve a problem than competitive products or services.

Examples: McDonalds, Jollibee or KFC? , Which do I buy? , Review or Sleep?

A Value Proposition Is Not…A tag-line!

A Mission Statement: A statement of the purpose of your business

“To give people the power to share and make the world more open and
connected.”

Customer Expectation

 What does every customer want when making a purchase?

 What are you looking for before you make a decision to purchase a
specific product or avail a service?

The value proposition statements should consist of these components:

1. what your product/service is
2. The target customer
3. The value you provide them?

Emergent Property - why your product is unique.

EXAMPLES:

Creating Value for Customers

ACCESSIBILITY
-Make products and services available to people who have no prior access to them
- Can be through innovations in business models or technology.
Example: Grab Holdings Inc. is a Singaporean transportation network company offering
services that include peer-to-peer ridesharing, ride service hailing and food deliveries.

PERFORMANCE
- Improving the performance of products or services.
Example: Digital cameras: increased pixels and resolution, more powerful zoom.

MORE PERFORMANCE-BASED
VALUE PROPOSITIONS

• Laundry detergent

• Bleach alternative

• Brightening agents

• Allergy free formula

• Increased cleaning power

• Enhanced with Fabreeze

• Toothpaste
 • Whitening

• Breath freshening

• Cavity prevention

• Tires

• Run flat tires

• All weather

• Extended wear

CUSTOMIZATION - Tailoring products and services to specific customer segments or customer

needs
Examples: NikeID, Nutella

CONVENIENCE- Making products and services more convenient and easier to use
Examples: Peapod, 7/11, bpi online

REDUCING RISK - Reducing risk of product or service underperformance or failure.

Examples:
- FedEx backs FedEx Express® shipments and FedEx Ground® shipments within the U.S. and to
Canada with a money-back guarantee.
- Chevrolet’s “Love It or Return It” allow new-car buyers to return vehicles for a full refund (up
to 4,000 miles)

DESIGN - Firms can differentiate their products and service through superior design, via
aesthetics, ergonomics, environmental implications and more
Examples:

• Virtually any Apple product

• Node electric outlet

• OXO swivel peeler

• Patagonia Synchilla fleece jacket (made from recycled plastic bottles

COST REDUCTION - Taking cost out for customers creates value and loyalty
Examples:

• Salesforce.com
 • Server hosting services

• Skype

• Bundled services such as Comcast’s triple play: internet, cable and phone

LOW PRICE & FREE

- Similar value at reduced or no price for specific customer segments
-Many require new business models to implement
Examples:

• Southwest Airlines

• Free email & free apps

• Overstock.com

• Smart Car

INNOVATION & NEWNESS

-Creates new set of “needs” or solves problems customers didn’t perceive or recognize
-Usually related to technology or innovation in business models
Examples

• Video games

• Cell phones

• Tablet computers

• Satellite radio
WHAT IS GLOBALIZATION?
- is a process of interaction and integration among the people, companies, and governments of different nations

WHAT IS THEORY?
- a set of principles on which the practice of an activity is based.
- an idea used to account for a situation or justify a course of action .

WHAT IS GLOBALIZATION THEORY?

- There are many theories of globalization In general globalization is the sharing of culture, and money, and
products, between countries that is happening because of international trade, and advances in transportation and
communication..

This section will give you a glimpse of the important theories on Globalization. We will analyze globalization culturally,
economically and politically. It would be helpful to assert that the theories see globalization as a process that increases either
homogeneity or heterogeneity.
 Homogeneity- refers to the increasing sameness in the world as cultural inputs, economic factor, and political
orientations of societies expand to create common practices, same economies, and similar forms of government.

 Heterogeneity- pertains to the creation of various cultural practices, new economies, and political groups because
of the interaction of elements from different societies in the world.

8 Theories of Globalization

I. Theory of Liberalism:

 Liberalism sees the process of globalization as market-led extension of modernization. At the most elementary level, it is a
result of ‘natural’ human desires for economic welfare and political liberty.

II. Theory of Political Realism:

 Advocates of this theory are interested in questions of state power, the pursuit of national interest, and conflict between
states. According to them states are inherently acquisitive and self-serving, and heading for inevitable competition of
power.

III. Theory of Marxism:

 Marxism is principally concerned with modes of production, social exploitation through unjust distribution, and social
emancipation through the transcendence of capitalism. Marx himself anticipated the growth of globality that ‘capital by its
nature drives beyond every spatial barrier to conquer the whole earth for its market’.

IV. Theory of Constructivism:

 Globalization has also arisen because of the way that people have mentally constructed the social world with particular

symbols, language, images and interpretation. It is the result of particular forms and dynamics of consciousness. Patterns
 of production and governance are second-order structures that derive from deeper cultural and socio-psychological

forces. Such accounts of globalization have come from the fields of Anthropology, Humanities, Media of Studies and

Sociology.

V. Theory of Postmodernism:

 Some other ideational perspectives of globalisation highlight the significance of structural power in the construction of
identities, norms and knowledge. They all are grouped under the label of ‘postmodernism’.

VI. Theory of Feminism:

 It puts emphasis on social construction of masculinity and femininity. All other theories have identified the dynamics

behind the rise of trans-planetary and supra-territorial connectivity in technology, state, capital, identity and the like.

 Biological sex is held to mould the overall social order and shape significantly the course of history, presently globality.

Their main concern lies behind the status of women, particularly their structural subordination to men. Women have

tended to be marginalised, silenced and violated in global communication.

VII. Theory of Trans-formationalism:

 This theory has been expounded by David Held and his colleagues. Accordingly, the term ‘globalization’ reflects increased

interconnectedness in political, economic and cultural matters across the world creating a “shared social space”. Given

this interconnectedness, globalization may be defined as “a process (or set of processes) which embodies a

transformation in the spatial organization of social relations and transactions, expressed in transcontinental or

interregional flows and networks of activity, interaction and power.”

VIII. Theory of Eclecticism:

 Each one of the above six ideal-type of social theories of globalization highlights certain forces that contribute to its

growth. They put emphasis on technology and institution building, national interest and inter-state competition, capital

accumulation and class struggle, identity and knowledge construction, rationalism and cultural imperialism, and

masculinize and subordination of women. Jan Art Schulte synthesizes them as forces of production, governance, identity,

and knowledge.
 What is Global Migration?
-The nuances of the movement of people around the world can be seen through the categories of
migrants- “Vagabonds” and “Tourists”.

-Vagabonds-a person who wanders from place to place without a home or job.

-Tourists-a person who is traveling or visiting a place for pleasure.

Refugees are vagabonds forced to flee their home countries due to safety concerns (Haddah, 2003).

Asylum seekers are refugees who seek to remain in the country to which they flee.

According to Kritz (2008), those who migrate to find work are involved in labor migration.

What is Labor Migration?

Is driven by “push” factors as well as “pull” factors

Labor Migration mainly involves the flow of less-skilled and unskilled workers, as well as illegal immigrants who live
on the margins of the host society (Landler, 2007).