Value Chain

1783 Words Mar 28th, 2013 8 Pages
Value Chain as a Company Strategy
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
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We must link out all the related processes and study the cost by using activities based analysis in order to find where is the highest cost allocate and what drive the process in high cost. After understand all the costs, we can easily develop strategy for competitive advantages. Internal Differential Analysis For the firms that require the competitive advantage in differential of product, the analysis is required to identify opportunities in order to sustain in differential of products. Firstly, they must take into concern about the customer’s value created processes such as in what section they are involved and evaluate the strategies of enhancing customer’s value such as product features, price, services, brand positioning and others. For a firm to achieve superior differentiation, it must utilize the best mix of resources in creating value for its customers. In order to prioritize its processes as sources of differentiation, a company must determine what attributes of each process enhance customer value. By studying the customers value activity in related processes, we can understand the customer value and hence will come out a differential product that may follow the degree of customers are willing to pay. We can either sell the differential product in premium price and can sell it in reasonable price but premium products in order to retain the market shareholder.
Vertical Linkage Analysis
After that, the

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