Question

Discuss how value is created and how it may be captured.

Answer 1

Value is created when the entrepreneurs and the businesses generates outputs at a much more value than the inputs.
Network effect helps in creating value as some of the products are very much valuable to the users. Social media plays an enormous role in generating value as they assist to attract a lot of customers.
Value is additionally created by building of the brand strength. If their is a strong brand than the brand can charge high price for their products.
Value can also be created by the development of highly efficient operations. If the manufacturing cost becomes low for a product than it will help in creating more value.

Value are often captured by retaining a minimal amount of the percentage of value provided.
Value can also be captured by monetizing the users and by pricing appropriately for the products and services provided.
If their is a good brand for a product then it will be able to earn high margins in their products and thus more value are going to be captured from it.