Value Chain Competitive Advantage
Value Chain as Competitive Advantage
Unit 3 Assignment
Katherine Moore
GB570 Managing the Value Chain
Jerry Haenisch, PhD.
Kaplan University
December 27, 2012
Value Chain as Competitive Advantage
Industries have in the earlier years concentrated on enhancing the supply chain activities in search of creating value. Nonetheless, optimizing these activities, only can lead to operative proficiency and not structural effectiveness. Contritely, when an organization, focus on growing their business through the value chain the organization has the opportunity to accomplish operative effectiveness and do not have to negotiate their operative competence. The value chain is designed to not only eliminate activities that do not augment value to their businesses but also grants incremental provision through their frame, human resource, technology, and investments. The value chain is the groundwork for constructing competitive advantage, growth and expansion. (Putnaik & Sahoo, 2009). According to Walters & Rainbird (2007), the sheer existence of a competitive viewpoint does not warrant achievement, it is critical that businesses have value distribution sustainability.
Review of Concepts According to Lu & Hung (2010), the competiveness of a firm is dependent upon the competiveness of the value chain in which it belongs. The evaluation of the critical concepts that a value chain creates is vital to the competitive edge of the firm. A firm that effectively creates their value chain will have an gain on a firm that does not comprehend the significance of a value chain. An organization must appreciate the importance of their customers and recognize that they are a vital part of their value chain. This can be done by: • Creating and distributing superior customer value - this is achieved by creating/and or strengthening the connection between customer value (expectation and delivery) and organization financial performance and competitive advantage.
Unit 3 Assignment
Katherine Moore
GB570 Managing the Value Chain
Jerry Haenisch, PhD.
Kaplan University
December 27, 2012
Value Chain as Competitive Advantage
Industries have in the earlier years concentrated on enhancing the supply chain activities in search of creating value. Nonetheless, optimizing these activities, only can lead to operative proficiency and not structural effectiveness. Contritely, when an organization, focus on growing their business through the value chain the organization has the opportunity to accomplish operative effectiveness and do not have to negotiate their operative competence. The value chain is designed to not only eliminate activities that do not augment value to their businesses but also grants incremental provision through their frame, human resource, technology, and investments. The value chain is the groundwork for constructing competitive advantage, growth and expansion. (Putnaik & Sahoo, 2009). According to Walters & Rainbird (2007), the sheer existence of a competitive viewpoint does not warrant achievement, it is critical that businesses have value distribution sustainability.
Review of Concepts According to Lu & Hung (2010), the competiveness of a firm is dependent upon the competiveness of the value chain in which it belongs. The evaluation of the critical concepts that a value chain creates is vital to the competitive edge of the firm. A firm that effectively creates their value chain will have an gain on a firm that does not comprehend the significance of a value chain. An organization must appreciate the importance of their customers and recognize that they are a vital part of their value chain. This can be done by: • Creating and distributing superior customer value - this is achieved by creating/and or strengthening the connection between customer value (expectation and delivery) and organization financial performance and competitive advantage.
References: Dess, G. & Pickens, C. (1999). Creative competitive (dis)advantage: learning from Food Lion’s freefall. Academy of Management Executives, 13(3). Gilaninia, S. (2011). The impact of supply chain management practices on competitive advantage. Interdisciplinary Journal of Contemporary Research in Business, 3(6). Guy, A. (2011). Entrepreneurship and the value chain: Importance, risks and suggestions. Advances in Management, 4(6), 63-65. Lu, W. M. & Hung, S. W. (2010). Assessing the performance of a vertically disintegrated chain by the DEA approach-a case study of Taiwanese semiconductor firms. International Journal of Production Research, 48(4), 1155-1170. Mourdoukoutas, P. (2011). Unintended consequences of outsourcing. Forbes. Retrieved from: http://www.forbes.com/sites/panosmourdoukoutas/2011/12/09/the-unintended- consequences-of-outsourcing. Putnaik, R. & Sahoo, P.K. (2009). Understanding value chain for growth: a case of Indian Wine Industry. The IUP Journal of Supply Chain Management. Vol. VI, Nos. 3&4, 2009. Schreiner, E. (2008). A description of the value chain and its usefulness. Retreived from http://smallbusiness.chron.com/description-value-chain-its-usefulness-37702.html. Walters, D., & Rainbird, M. (2007). Strategic operations management: A value chain approach. New York: Palgrave Macmillan. Yang, C. (2011). Identification of customer delight for quality attributes and its applications. Total Quality Management & Business Excellence, 22(1), 83- 98.doi:10.1080/14783363.2010.53234.