Value creation refers to the process by which a company generates economic value for its stakeholders, including shareholders, employees, customers and suppliers. This is achieved through various strategies such as innovation, differentiation, cost leadership or a combination of all three. The goal of value creation is to increase the wealth of the firm's stakeholders by providing them with products or services that are valuable, unique and affordable. It involves identifying opportunities for growth, improving efficiency, enhancing customer satisfaction and building long-term relationships. Ultimately, value creation leads to increased profitability, market share and competitive advantage for the company.