Value Strategy
Many entrepreneurs consider the development of a value strategy a key issue in justifying the development of a particular business. The solution of several problems is of fundamental importance in supporting such a course of work. In particular, it is essential to determine at what level prices should be set and why this value should be dynamic but not static. The implementation of this strategy allows maintaining high consumer interest and, as a result, achieving stable profits.
When setting the price level for certain products, any entrepreneur should take into account that this variable can change within certain limits. Its minimum level is determined by the costs of production and sales of products: the price should reimburse these costs and provide some profit. Its maximum level depends on the emerging consumer demand in the market. As Green and Katz (2017) argue, “central to lean business practices is being close to your customer;” therefore, the interest of the target audience is to be taken into account (p. 165). The specific price level is set in accordance with the goals of the business and the competition prevailing in the market. The neutral pricing strategy may be an effective way of creating a successful business. Given all these criteria, it will be easier to achieve stable consumer interest and profits.
Benefits of the Value Proposition
The neutral pricing strategy is applicable at all phases of work except decline and is typical for start-up businesses when profits are determined as a key success factor. This principle of operation is considered fair since it does not lead to the emergence of new competitors, does not allow firms to profit at the expense of buyers, and makes it possible to obtain a fair return on invested capital. Priem, Wenzel, and Koch (2018) give an example of such a strategy and note that it allows the target audience to “retain some consumer surplus,” which, in turn, has a positive effect on the evaluation of a certain business. Moreover, this type of business activity leaves some space for growth, and the seller can use different methods and ways of attracting customers in the future. This dynamic and safe scheme of work may be a significant advantage in organizing an individual business due to its neutrality and the absence of aggressive activities in relation to competitors.
Faith in an Entrepreneurial Start-Up as a Contribution to the Value Proposition
Even from a biblical point of view, faith in an entrepreneurial start-up is a valuable resource and contribution to the value proposition. Based on religious concepts, it is possible to achieve the recognition of the target market and become an honest seller who does not violate the law and offers only high-quality goods. Encouraging entrepreneurship is often considered in the context of biblical passages, and, as Higginson and Robertshaw (2017) remark, “even in Silicon Valley, the church plays a big role” (p. 47). Business activities are not condemned; on the contrary, incentives for productive work are mentioned in the Scripture. In particular, Higginson and Robertshaw (2017) cite a passage in the Bible that says: “be fruitful and multiply” (p. 47). This principle may be regarded as a call for active work on attracting people. Neutral pricing is not a violation of either entrepreneurial or religious canons. Therefore, this strategy can be considered successful, and faith in a particular start-up should be an integral part of work.
References
Green, R. P., & Katz, J. (2017). Loose leaf entrepreneurial small business (5th ed.). London, UK: McGraw-Hill Education.
Higginson, R., & Robertshaw, K. (2017). A voice to be heard: Christian entrepreneurs living out their faith. London, UK: Inter-Varsity Press.
Priem, R. L., Wenzel, M., & Koch, J. (2018). Demand-side strategy and business models: Putting value creation for consumers center stage. Long Range Planning, 51(1), 22-31.