Value Chain Competitive Advantage - 1300 Words

Value Chain as Competitive Advantage If a firm sustain profits that exceed the industry average, said firm is said to have a competitive advantage. The goal of any given business strategy is to achieve a competitive advantage. Moreover, the goal of a successful business strategy is a sustainable competitive advantage. The question is how does a firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activities in a way that creates more overall value than competitors (1985). The purpose of this paper is to examine how the value chain creates competitive advantages. It will review the concepts of the value chain, the inter-relationship of these concepts as well as provide examples of companies that were successful and unsuccessful in the integration of these concepts. Review of Concepts Competitive advantage means more than merely surpassing what competitors can do. It also means discovering what a firm’s customers want and then adequately satisfy and exceed their expectations. The competitiveness of a firm is generated by how successful it is in achieving that which is most valuable, most important and most efficient. In other words, firms want to identify its most valuable customers, its most important products/markets and wants to perform the activities that are most efficient (Poppelaars, 2013). To achieve these goals, firms should utilize the value chain as a tool of processShow MoreRelatedValue Chain Competitive Advantage1627 Words   |  7 PagesValue Chain as Competitive Advantage Unit 3 Assignment Katherine Moore GB570 Managing the Value Chain Jerry Haenisch, PhD. Kaplan University December 27, 2012 Value Chain as Competitive Advantage Industries have in the earlier years concentrated on enhancing the supply chain activities in search of creating value. Nonetheless, optimizing these activities, only can lead to operative proficiency and not structural effectiveness. Contritely, when an organization, focus on growingRead MoreValue Chain : Competitive Advantage1444 Words   |  6 PagesValue Chain as Competitive Advantage If a firm sustain profits that exceed the industry average, said firm is said to have a competitive advantage. The goal of any given business strategy is to achieve a competitive advantage. Moreover, the goal of a successful business strategy is a sustainable competitive advantage. The question is how does a firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activitiesRead MoreValue Chain : Competitive Advantage1492 Words   |  6 PagesValue Chain as Competitive Advantage The idea of a value chain was first proposed by Michael Porter (1985) who identified that the more value an organization creates, the more profitable it is likely to be. Porter describes the value chain as the internal processes or series of activities a company performs â€Å"to design, produce, market, deliver and support its product† (Porter, 1985). John Shank and V. Govindarajan (1993) describe the value chain in broader terms than does Porter, affirming â€Å"theRead MoreValue Chain as Competitive Advantage1024 Words   |  5 PagesValue Chain as Competitive Advantage Unit 3 Assignment Bobby Young-Mentgen GB570 Managing the Value Chain Pricilla Aaltonen Kaplan University September 25, 2012 Value Chain as Competitive Advantage Customer-centric businesses focus on consistently delivering a differentiated experience designed to satisfy the customer. The ultimate goal is to sustain competitive advantage in the marketplace. The purpose of this paper is to demonstrate why an effective value chain creates competitive advantageRead MoreValue Chain as Competitive Advantage1295 Words   |  6 PagesValue Chain as Competitive Advantage Unit 3 Assignment Christine Washington GB570 Managing the Value Chain Jerry Haenisch, Professor Kaplan University November 12, 2012 Value Chain as Competitive Advantage Effective value chain as a competitive advantage can contribute significantly to the prosperity of a firm in the competitive arena, but it can cause dire situations if not operated properly (Guy, 2011). However, there are conflicts among companies as to how stakeholders think theyRead MoreValue Chain for Competitive Advantage6510 Words   |  27 PagesCorporate and operational managers strive to create more value by optimizing the supply-chain activities. Optimization of supply chain activities means competition from other firms, primarily on cost-efficiency. However, optimization of supply chain activities alone cannot always yield a source of competitive advantage. This is for the simple reason that value chain not only seeks to do away with the activities that do not add value, but establishes the importance of other support activities, includingRead MoreCompetitive Advantage And The Value Chain1400 Words   |  6 Pages Competitive Advantage and the Value Chain Unit 3 Assignment Trecia Grimes Kaplan University GB570: Managing the Value Chain Dr. Rita Gunzelman September 25, 2017 â€Æ' Corporate Social Responsibility and the Value Chain It is difficult for an organization to remain competitive in today’s market without taking Corporate Social Responsibility (CSR) into consideration. In today’s market consumers are more aware of how businesses develop their products and service. A few major concerns for consumersRead MoreDell Competitive Advantage and Value Chain Analysis1544 Words   |  7 PagesStrategic Management: Dell Value Chain Activities Analysis INTRODUCTION According to Porter the value chain is defined as the complete flow of products from the suppliers to the customers and management of the information flow in a way that maximizes the consumer satisfaction with the increase in the profit margins of the company.(ivythesis,2009) Dell’s value chain is one of a kind, they outsource all there components across the world and then assemble and sells it directly to the customers. DellRead MoreCompetitive Advantage Through Value Chain And Vertical Integration1072 Words   |  5 Pageswhat are they doing to maintain competitive advantage? Rise of technology has given birth to competition by giving companies new ways to perform at higher levels and this has also led to the ways companies are producing their products and services. Technology has affected several sections of an organization by having an impact on business communications, company’s HR practices, and organizational changes. Therefore, in order to gain and maintain competitive advantage, a company must do one of the two;Read MoreUsing Porter’s Value Chain Framework, Explain How Technology Can Help an Organisation to Gain a Competitive Advantage1967 Words   |  8 PagesIn order to analyse the various types of activities which would help in the creation of competitive advantage he use of Porter’s Value Chain Analysis are done. The value chain analysis will help in order to perform two main activities such as primary support activities. The primary activities in the value chain analysis takes into consideration inbound and outbound logistics, marketing and sales after sales service. Whereas the support activities takes into consideration, procurement of raw materials