Company 's Position Of The Value Chain

It is the wish of every business to be able to achieve and maintain a competitive advantage. A competitive advantage can be considered to be an advantage, a condition or even a position that will make a firm to be able to operate efficiently and also be able to produce products or services that are of a higher quality than the previous ones or than the other competing firms. When a firm is able to achieve increased earnings as compared to the costs it incurred, then it can be said to have achieved a competitive advantage according to Michael Porter, a

A company’s success in developing and sustaining its competitive advantage does not depend on its own value chain but on its ability to manage the value system on which it is a part. An example would be an automobile manufacturer that may have its suppliers set up facilities in close proximity in order to minimize transport costs and reduce parts inventories.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

Companies are using value chain approach to better understand which key areas will give them the greatest edge over its competitors. They are focusing on each division, distribution centers, pricing, product innovation, selling techniques, and value-chain formations.

The value chain is a concept developed by recognized Harvard business management expert Michael Porter in his book "Competitive Advantage (1985)." It breaks up the various elements of producing and

The growth plan is ultimately driven by the growth of the entrepreneur who started the business. (Hart, 2013). To ensure the growth of K9 Fitness, staying competitive in the fitness industry is crucial. There are new gyms opening up in multiple cities every single day, each with new types of machines, new weights, and new types of group classes to help keep peoples interests. Some of these gyms are selective to a certain type of workout class, such as yoga studios, pilates studios, cycling, etc. K9 fitness will have all of those classes included as part of the membership fee. There will be trainers that specialize in each specific class offered so that the members will only be taught by those with trained knowledge. Many gyms

A value chain adds value to raw materials as they pass through the production process and then, inevitably, through the marketing and sales process. In a broad sense, it is about identifying value via identifying areas of comparative advantage and how the organization can bolster its market standing and its overall value and impact. It may also be noted that the value chain is, for all intents and purposes, all internal activities and processes within the organization that yield outputs in one form or another. It entails (or should entail) everything from channel objectives to distribution strategy to marketing program supports to supplier configuration and collaboration to communication plans (Burrows et al, 2012).

The fitness industry is a rapidly evolving industry today. Being fit itself has evolved from a luxury to being a basic necessity. As a result a lot of fitness centres have mushroomed up across cities. Being individual or small-medium operations, these centres lack a regularized operations model, with payments being made in instalments, attendance of client being random, with the fitness regimes following a similar modus operandi. As a result the stakeholders of fitness centres the owners/managers and the customers themselves are at a loss, with the owners/managers

A value chain may be defined as the chain of activities that firms operating in specific industries, such as the healthcare industry, perform in order for them to deliver valuable service or product for its consumers. The value chain concept comes from management of business and it was first described by Michael Porter in the year 1985 in his book “competitive advantage.” The main idea of value chain may be based on a process view of an organization, the idea to see an organization as a system that is made up of different subsystems that have inputs, different transformation processes, and outputs. Some of the factors within the chain include money, materials labor, equipment land, administration, management, and building. How the value chain is managed, including the above factors, determined the effects on profits and costs. The supply chain may be used for the success of any organization through the subdivision of an organization’s functionality. The division ensures that there is easier management of human assets and resources. An example of a health care value chain is the flow from inbound logistics to operations to outbound logistic to marketing and sale and finally to provision of services and consumption of products.

Corporate 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, including infrastructure, technology, and so on, that play a vital role in providing the foundation for competitive advantage. Value chain's primary activities are similar to the primary functions of the supply chain. Where supply chain focuses on

Now a day, many companies are trying to improve their value chain in order to use the value chain as a strategy in the manner of meeting the customers need and satisfaction. One of the strategies they are using with value chain is to gain competitive advantages for rival among their competitors. Value chain actually can discover and fulfil what customers want and the identification of customer needs will hence become one of the ways to surpass their competitors in term of competitive advantages. Customers can have the best satisfaction of the things that they really want, at an acceptable price level. In other words, a company overall competitive advantage derives from the difference between

Value chain analysis relies on the basic economic principle of advantage — companies are best served by operating in sectors where they have a relative productive advantage compared to their competitors. Simultaneously, companies should ask themselves where they can deliver the best value to their customers.

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 “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 “the value chain for any firm is the value-creating activities all the way from basic raw material sources from component suppliers through to the ultimate end-use product delivered into the final consumers hands.”

Manufacturing, the process responsible for producing any goods manipulated from their raw form, whether transforming steel into an automotive vehicle or grains into cereal, this fundamental component of the value chain plays a central role in the world economy. Born during the industrial revolution, many of the processes remain the same, with executives running the factory, supervisors overseeing operations, shop floor workers creating the product, and maintenance workers ensuring the smooth running of equipment. While these processes have transcended time relatively unchanged, the technology and tools employed by workers to complete these processes has changed, albeit slowly in some cases. Driven by executive pressure to reduce costs and improve margins, factories through the ages have engaged in strategic moves to diminish the expenses of labor. Moving to areas with less stringent regulations and lower labor costs or investing in technologies that automate human tasks, competitive pressures has made the manufacturing sector one of the most technologically evolved.