What is the value curve and why is it important? What will be an ideal response?

A value curve is a diagram which is used to show in an instant where the value is created within the organization's services and products. The value curve shows in a graphical way the company or the industry sets its consumer offering. It is an effective mechanism to create new market spaces. The value curve serves two purposes; it shows the current competitive landscape in the market and allows us to use this information to develop new offerings that do not compete with existing rivals.

A value curve is essential as it helps you test whether your strategy stands out from your competitor's strategy. Value curves help in gap identification in the market. They provide an exact, visual representation of the competitors' strategic profiles in the industry.