Louis Vuitton and Gucci to deliver a competitive advantage. Does the advantage come only from the brand name or there are other advantages? (5) Louis Vuitton (6) Gucci (7) The VALUE CHAIN AND THE VALUE SYSTEM were developed by Professor Michael Porter. The concept of value added can be used to develop company ’s sustainable competitive advantage. Like most of the organizations LV consists of activities that link together to develop the value of the business. The VALUE CHAIN is used for developing
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privatization and globalization leading to difference in company’s strategies. A strategy can be defined in many ways and has many different viewpoints. This article aims to explain and critically evaluate the approaches of Jay Barney and Michael E. Porter‚ two leading strategy theorists‚ in-turn explaining the basis leading to the difference. What is Strategy & Competitive Advantage? Strategy is the creation of unique and valuable position involving a different set of activities.1 A firm
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customer value‚ creating customer value‚ delivering customer value‚ capturing customer value‚ and sustaining customer value. To help a company identify the ways to create more customer value‚ Michael Porter of Harvard proposed the Value Chain as shown in the next page. As you can see in the diagram‚ Porter separates a business system into a series of value generating activities. Those activities are sequence and found to be common in a wide range of firms. There are two main groups of activities‚ including
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Case No: 1 BPO – BANE OR BOON ? Answers: 1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors? 1. Suggested Theory to gain dynamism and competitiveness in Operation A. Developing executive leadership at three levels top team‚ the personal development of individual executives as leaders and the Chief Executive Officer (CEO) B. Success Brand Development and Brand Strategy : An effective brand strategy will
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CRITICISMS OF PORTER’S DIAMOND I. INTRODUCTION The book‚ “The Competitive Advantage of Nations”‚ shows how Michael Porter studied ten developed countries and 100 industries in order to answer questions concerning the national competitive advantage which he found to be inadequately explained by the Heckscher-Ohlin theory and the theory of comparative advantage. (Hill‚ 2009‚ p. 189). These questions include: A. “Why are some nations more successful than others in international competition?”
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Professor Michael E. Porter Institute for Strategy and Competitiveness Harvard Business School Cambridge‚ Massachusetts June 24‚ 2005 This presentation draws on Michael Porter‚ Klaus Schwab: The Global Competitiveness Report 2004-2005‚ Oxford University Press‚ 2004 and other sources. For further information on the Report and on the Institute for Strategy and Competitiveness see www.isc.hbs.edu 200506 GCR Vietnam – KC 2005.06.24.ppt 1 Copyright 2005 © Professor Michael E. Porter Topics for
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environment for the interest of the organization. That is why companies should not only be flexible‚ but also managers should develop a keen sense to anticipate change; therefore companies will be able to achieve to be at the forefront. According to Porter (1998) “Activities provide the bridge between strategy and implementation. When strategy was defined in terms of broad positioning concepts‚ a clear separation between strategy and structure was meaningful and useful.” Innovation is everywhere and
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resulted‚ but rarely have these gains translated into sustainable profitability. And gradually‚ the tools have taken the place of strategy. As managers push to improve on all fronts‚ they move further away from viable competitive positions. Michael Porter argues that operational effectiveness‚ although necessary to superior performance‚ is not sufficient‚ because its techniques are easy to imitate. In contrast‚ the essence of strategy is choosing a unique and valuable position rooted in systems of
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Ballinger‚ L BBC News (2012). Ikea profits rise 10% as emerging markets boost sales. http://www.bbc.co.uk/news/business-16649251 [accessed 24 July 2012] BBC News (2005) The pleasure and pain of Ikea BBC Learning English (2012) Episode 12: Michael Porter – biography. http://www.bbc.co.uk/worldservice/learningenglish/work/handy/porterbiography.shtml [accessed 28 July 2012] BBC News (2000) Ikea’s self-assembled billionaire BBC News (1999) Ikea staff assemble own pay packets. http://news.bbc.co.uk/1/hi/business/469640
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Strategic Management Journal‚ Vol. 12‚ 95-1 I7 ( I 991) /----- TOWARDS A DYNAMIC THEORY OF STRATEGY MICHAEL E. PORTER T-- Graduate School of Business Administration‚ Harvard Universitv‚ Boston‚ Massachusetts‚ U.S.A. This paper reviews the progress of the strategy field towards developing a truly dynamic theory of strategy. It separates the theory of strategy into the causes of superior performance at a given period in time (termed the cross-sectional problem) and the dynamic process
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