Value Chain as Competitive Advantage

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Value 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 advantage. Review of Concepts Value Chain 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…show more content…
The key success of the company focused upon value elements of low costs, low prices, and the business innovation of the firm. IKEA’s desire was and is to convey to the customer that the function of its business is to create value, not use it. Successful linkage of IKEAs value chain activities served as a framework for developing customer delight, thus creating a sustainable competitive advantage (Guy 2011). Hewlett Packard integrates the inbound and outbound logistics, operation and service, marketing and sales, and a series of supporting activities as its main competitive advantages and cooperates with partners in a value delivery model, which not only maximizes its own profit but also benefits its customers and partners. HP successfully discovers its value proposition and continues developing and reinforcing its value production and coordination. By the establishment of alliances, using of product platform, continuous concentrate in service improvement, R&D and brand building, HP has successfully delivered values to meet customers’ and other stakeholders’ expectations creating a sustainable competitive advantage (Zhang 2010). Example of Unsuccessful Company Mitsubishi in Australia is an example of an unsuccessful company. By the time Ford strategized industry drivers necessary for success, it was too late (Walters, 2007). Conclusion The
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