Posts Tagged ‘Value Chain Analysis’
Supply Chain Analysis
There is so much competition that margins are thinly reduced putting a great strain on supply chain management that, if not successful, can have drastic impact on the bottom line. Organizations need to have the ability to compare product value in an intelligent fashion analyzing changes relating to repair and/or refurbishment costs, spare parts pricing, resale value as well as if the overall demand for this product is profitable. Additionally, such considerations as flexibility and scalability are needed to allow sales to either outmaneuver or eliminate any competition.
It Always Comes Down to Applied Darwinism
Value Chain Analysis
OK, you are a business, marketing to a consumer. You know Value Chain analysis is critical. But, rather than matching up your Value Chain of your business exactly to the “Value Chain” of your consumer, you are ranking the buyer criteria as outlined in Michael Porter’s book Competitive Advantage .
Now’s the time to add Maslow’s Hiearchy of Needs into the mix.
Overly complex? Too much data? Too much analysis? Can’t we just write a couple of great ads and be done with it?
Sure–but we’ll miss out on Read the rest of this entry »
Porters Value Chain Model
Michael Porter identifies supplier power as an important component of his five forces model in analyzing the competitive environment of a business. Supplier power refers to your supplier’s ability to dictate the price of the raw material or other inputs that he supplies you. The model says the more power your supplier has to dictate the price, the less competitive you are in that business environment. You need to reflect the high price in your finished goods and the higher your price is, the less customers you will attract in the market.
Supplier power increases when Read the rest of this entry »
Porters Value Chain
A competitive advantage could simply be defined as the advantage or ability a firm has over its rivals in the industry; or the ability a firm has to outperform its industry rivals.
A firm is said to have a competitive advantage when it has the capabilities or means to push out its rivals in striving for the favour of customers. This applies internationally or locally as well as to both services and products.Thus, a sustainable competitive advantage is the persistence the firm applies despite efforts by competitors or potential entrants to copy or overtake it. Sustainability Read the rest of this entry »