Competitive Advantage Through Value Chain And Vertical Integration

1072 Words Sep 12th, 2016 5 Pages
We are living in a world, where technology keeps changing on day-to-day basis. In this ever-changing world of technology, the question is how are some companies doing better than the others and what 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; either produce goods/services at a lower cost or produce innovative products in a way that leads to differentiation and a premium price.
Section 1: Competitive Advantage through Value-Chain and Vertical Integration
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.
Value chain is an important notion that highlights the role of information technology in the operations of a company. “A Value-Chain is the whole series of activities that create and build value at every step. The total value delivered by the company is the sum total of the value built up all throughout the…
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