Question

 What is value addition? Explain by giving examples.

Answer 1

Value addition refers to creation of a competitive advantage by, combining, packaging features and benefits or through any other method that results in greater customer acceptance. Its examples are:

1. Offering one year of free support on a new computer would be a value-added feature.
2. Turning cotton into fabric. Here, fabric has more usefulness than cotton.
3.  Turning milk into cheese. Cheese has got more specific uses than milk.
4. Packaging ready-to-use grated cheese into serving size packets.
5.  Turning wood into paper. Utility of paper is more than wood.