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The importance of the value chain analysis
What is are benefits of competitive advantage
What is are benefits of competitive advantage
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In the review of the corporate level strategy, we can see many different competitive advantages branching from their use of corporate diversification and vertical integration. Going deeper into those strategies the three elements that allow for a competitive advantage for The Kroger Co. include operating into different markets, having a successful customer reward program, and by having many different locations nationwide under many different brand names. The VRIO analysis found that all three of these give Kroger’s a sustainable competitive advantage by being valuable, rare, costly to imitate and having the right organization structure business wide. In the review of the business level strategy, there were just as many different competitive
Nowadays, more employers require new workers to sign “Non-Compete Agreements”, in order to prevent insiders from taking consumers’ data, business secrets or newly researched technologies to competing firms when the workers leave. A non-compete agreement is a contract between an employee and employer that confines the ability of workers to involve in business which competes with their current employer. The agreement is most often signed at the beginning of employment. It puts a limit on the employee to not work for a competitor company immediately after leaving their employment with the current company.
EXECUTIVE SUMMARY TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15 INTRODUCTION COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.
Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage
How Sustainable is Apple’s Competitive position Introduction Apple started out simply as a computer company producing Macintosh computers and software, but has since evolved over the years to manufacture other products. It introduced iPods in 2001 for music players, in 2007, it started producing iPhones. Its products are consumer oriented and this has contributed to the success of the company. Apple also views innovation as basis of survival and business development (Yoffie, 2012).
4. Analysis of strategic capacities of Nikon Corporation This section analyzes the strategic capability Nikon. It starts with a value chain analysis, followed by a VRIN evaluation to determine whether there is any capacity can be sustained competitive advantage. 4.1 Value chain analysis Porter developed the value chain to help determine the internal activities for a competitive advantage, and which are not.
The value chain equates to the internal activities that a company employs in transforming its inputs to outputs; this helps with the improvement of activities, helping the company to achieve competitive advantage. In the analysis of H&M’s organizational capabilities the value chain analysis would show that with viewing the internal activities; this analysis would show where the company’s competitive advantages as well as disadvantages lies. This analysis would then depict the company’s core competencies. When a company is said to be competing through its cost advantage; it would most likely try to carry out its internal activities at a much lower cost than its competition would want to.
This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment
The value chain analysis indicates the firms that strive to create superior products or services through focused differentiation strategy. To ensure the activities are tailor to the strategy Value Chain is used. How each activity generates value and linked to the strategy in UFS? Table 4: Value Chain Analysis Primary Activities
To a certain extent, we live in a free country. Especially economically there is a lot of freedom to enjoy. The Netherlands is not the only country which allows freedom on this scale, there are a lot of countries in which great economic freedom is very common. That there are certain rules to follow, may sound quite logic. There are limits called laws, which may not be crossed.
Competitive advantage is a set of unique attributes of a nation. It is an advantage, capability, ability, strategy, that a nation or state or country has and enabling it to generate or produce or make more sales, profit, money, income and revenue and enables it to attract and retain more investors than other nations (competitors). It also puts a state in a profitable and superior strategic business position in the global markets (OU, 2010). The above figure: the determinants of national competitive advantage of Porter (OU, 2010).
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
The increasing level of competition decrease the profitability. Moreover, this tool provides a foundation to formulate strategy and recognize the competitive landscape in the same industry of the company ("Industry Analysis | Porter’s Five Forces | Competition,"
