Value creation is not the same as value capture
Value creation is not the same as value capture
- A business can create immense value for society but capture very little of it.
- For example, airline companies create billions of dollars in value but have very small profit margins.
- In contrast, companies like Google create less value but are able to capture a much larger portion of it.
- To build a valuable company, you need to not only create value but also capture a significant portion of that value.