Business – 1.1 Enterprise – The nature of business activity | e-Consult

Model Answer:

Adding value refers to the process by which a business enhances its products or services so that they are perceived as more desirable by customers, allowing the firm to command a higher price or gain a competitive advantage.

• Product differentiation: Introducing new features, higher quality materials, or innovative design that make the product stand out from competitors.
• Customer service enhancements: Providing after‑sales support, warranties, or personalised service that increase the overall customer experience.