Value Chain
Strategic Service ManagementValue chain techniqueMaster of Arts in International Service Management(MAISM)Maedot Assefa Kebede20073755Michel AltanSjoerd A. GehrelsSchool of Graduate StudiesStenden UniversityLeeuwardenThe NetherlandsNovember, 2008 |
Table of Contents
1. Introduction 3
2. Value chain Goal and objectives 3
3. Origin of the Value chain 6
4. Value chain and the ten schools 7
5. Advantages and Disadvantages of the Value Chain 9
6. Value Chain in Service industry 10
Bibliography 13
1. Introduction
The essence of strategy formulation is coping with competition (Porter, 1998). When an organization has competitive advantage, it has something that other competitor’s in its league doesn’t have. Competitive advantage is defined by Coulter, 2008 as what sets an organization apart or its competitive edge.
Organizations can see internal and external factors to see where their competitive advantages can benefit them the most. Looking into internal analysis of organizations, it is important to emphasize on organizational resources. Resources include financial physical, human, intangible, and cultural structure assets used by an organization to develop, produce and deliver products or services to its customers (Coulter, 2008). The resource based view (RBV) states firm’s resources are important in getting and keeping a competitive advantage.
But all resources might not necessarily contribute for the organization’s competitive advantage, there for the RBV suggests that resources must be unique to be a resource of potential competitive advantage.
Value is one of the characteristics that resources should have and these resources can play part in making a competitive firm. Adding value generally mean resources can be used to exploit external circumstances that are likely to bring in organizational revenue or it can be used to neutralize negative external situations that are likely to keep revenue from flowing in (Coulter, 2008). In other words
Table of Contents
1. Introduction 3
2. Value chain Goal and objectives 3
3. Origin of the Value chain 6
4. Value chain and the ten schools 7
5. Advantages and Disadvantages of the Value Chain 9
6. Value Chain in Service industry 10
Bibliography 13
1. Introduction
The essence of strategy formulation is coping with competition (Porter, 1998). When an organization has competitive advantage, it has something that other competitor’s in its league doesn’t have. Competitive advantage is defined by Coulter, 2008 as what sets an organization apart or its competitive edge.
Organizations can see internal and external factors to see where their competitive advantages can benefit them the most. Looking into internal analysis of organizations, it is important to emphasize on organizational resources. Resources include financial physical, human, intangible, and cultural structure assets used by an organization to develop, produce and deliver products or services to its customers (Coulter, 2008). The resource based view (RBV) states firm’s resources are important in getting and keeping a competitive advantage.
But all resources might not necessarily contribute for the organization’s competitive advantage, there for the RBV suggests that resources must be unique to be a resource of potential competitive advantage.
Value is one of the characteristics that resources should have and these resources can play part in making a competitive firm. Adding value generally mean resources can be used to exploit external circumstances that are likely to bring in organizational revenue or it can be used to neutralize negative external situations that are likely to keep revenue from flowing in (Coulter, 2008). In other words