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Developing business ideas for drone technologies
Developing business ideas for drone technologies

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2.2 The fit of a value proposition

According to Osterwalder et al. (2014, p. 48), it is possible to evaluate a value proposition by considering three types of fit between its different blocks.

The first type of fit is between customer needs and the value proposition itself and is called a problem-solution fit. In Week 4 you looked at the three subblocks of the value proposition (product and services, gain creators and pain relievers) and the three subblocks of the customer profile (customer jobs, customer gains and customer pains). A problem-solution fit ensures the value proposition is designed to address customer needs.

The second type of fit is named a product-market fit and relates to the creation of customers. Are customers reacting positively to the value proposition? If there is a demand it demonstrates the ability to create value for customers.

The third type of fit is a business-model fit and relates to the value proposition being embedded in a profitable and scalable business model. This means that all the elements of the business model are integrated together and create a sustainable financial return. It also means that it is possible to scale-up the model, for example expanding in different locations.