What Model Of Value Creation?

1527 Words Nov 12th, 2015 7 Pages
The strategy is commonly regarded as the prerogative of the business executive. The purpose of the business strategy is to achieve a competitive advantage, that is to say the ability to generate a sustainable profit higher than concurrent, although cases of companies whose performance remains permanently above market remain extremely rare. The business strategy is basically to answer three questions:
1. What model of value creation (V) use to ensure sustainable benefits to the Caffarel Company (which is its business model)?
2. Can we avoid imitation (I) of this model of value creation by competitors to gain a competitive advantage?
3. Which perimeter (P) model of value creation is deployed?
These three dimensions, value - Imitation - Scope (or VIP model), summarize the key strategic issues. The success of a business strategy is always relative and not absolute, but must be measured by the success of the strategy of competitors. The aim is therefore to achieve a competitive advantage, that is to say, to identify sustainable profit higher than competitors ( Prova*lis, R, 2005), The strategy must match the resources and expertise of the organization threats and opportunities of the environment. The main risk is that all competitors carry equal responses, causing an institutionalization of the industry. The scope of the Caffarel Company can be extended in various ways:
Diversification policies change the scope of activity of the organization in terms of new products and / or new…

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