Competitive Advantage And Value Chain Analysis

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Competitive Advantage and the Value Chain
Unit 2 Assignment
Trecia Grimes
Kaplan University
GB570: Managing the Value Chain
Dr. Rita Gunzelman
September 16, 2017

Competitive Advantage and the Value Chain Successful organizations remain profitable and competitive when achieving customer delight is their overall objective. Designing and implementing an effective value chain is the key to success. When competitive advantage is tied to customer delight then an organization will see growth and profitability. In this paper the interwoven relationship between effective value chain management, profitability, competitive advantage and customer delight will be outlined. All firms make decisions that affect their competitive position and profitability. Strategic planning is the organizational process of making these important decisions. It is undertaken in an
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Cost, quality, response time, and flexibility are all valued by the consumer. Quality is often a key indicator of what a customer is willing to pay. Creating great quality that are distinct to the organizations can result in consumers paying more. Coach purses are designed and manufacture to be of great quality. For this reason Coach can charge a higher price for their product than the no name brand that is available in Walmart. Better quality items usually are perceived as being product or service that will last longer. Lowering cost by adjusting the value chain and appeal to customers. Consumers will often prefer to remain loyal to your brand if you can make your product affordable. Customers will be willing to pay more for the value received than it costs for the company to deliver value resulting in heightened profitability. The value chain should be able to deliver sustainable competitive advantage leading to sustained profitability. (Presutti & Mawhinney,

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