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Concept of Value Creation

Concept of Value Creation: Value creation has been main objective of the business entity. Creating the value for consumers helps in selling the products as well as services, whereas creating the value for stake holders, in form enhances the stock price, insures the future availability of the investment capital towards the fund operations. Value creation has been the strategy which is recognized through organizations as the technique to increase the profitability through adding the value towards the specific product, if this has been tangible & intangible. The value creation is the difference among costs of the production as well as value, which customers perceives in their products, therefore implying, bigger margin within price per one unit as well as cost of the production per single unit, bigger level of the value created.

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