The distinction between the creation and capture of value is critical in a business model because:

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The creation and capture of value may be separated, and it is important for a business to have a clear understanding of how they plan to do both. Value creation involves developing a product or service that solves a problem or meets a need for customers. Value capture, on the other hand, involves determining how the business will monetize the value created, either through pricing strategies or other revenue streams. Understanding this distinction is critical for building a sustainable business model.

The Distinction Between the Creation and Capture of Value Is