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You can use Ethereum as a private blockchain

But why do companies need to host their own blockchain? What is the value proposition in doing so?

Accessing data with permissions towards access only going to specific, pre-determined parties. Brings blockchain in line with the current data control paradigm by doing so.

If you're restricting permission like this, why bother with a blockchain at all? Why not just use a conventional database?

With a conventional database, the owner can set any value to anything they like.

With a private blockchain (and smart contracts), the owner can't forge values.

For example lets say you want to fake a transfer from client A to client B. In a traditional database, the owner can do that. With a blockchain, the owner can't.

The owner of the blockchain can of course forge values! The computational power of the network of a private blockchain is fairly easily overcome.

And every actor will know there's a double spend attack and stop accepting the chain. Unlike a public blockchain, there should never be a fork in a private blockchain. If there is a fork, you know the owner is mounting a double spend attack.

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