What is a Value Proposition and how important it is in selecting a company to invest?

A Value Proposition is a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service. This statement convinces a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. (Source: Investopedia).

In selecting a good and sustainable company to invest, we should select company with a value proposition.

To add value proportion to a business: Understand and analyse the 3D:

• Discontinuous Innovation, 
• Defensible Technology, 
• Disruptive Business Model.

(1) Discontinuous Innovation: offer transformative benefits by looking at problem differently.

(2) Defensible Technology: offer Intellectual Property that can be protected to be economic moat over the competitor and unfair competitive advantages.

(3) Disruptive Business Model: yield value & cost rewards that help catalyze the growth of a business.