Value Chain as Competitive Advantage

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Value Chain as Competitive Advantage All corporations have a common purpose, which is to sell a product or a service, built customer and employee loyalty, and become profitable. In order to accomplish those objectives, the company must implement an effective value chain, which translates into competitive advantage. Furthermore, “Value change may lose its ability to generate value for the end customer to competition, demand, fluctuations and discovery of weak links” (Guy, 2011, para. 1). Therefore, any business that wants to succeed in today’s strong competitive environment must be ready to make the necessary adjustments to their value chain in order to stay competitive and meet the external business environment changes. The Value Chain model is a combination of processes and activities that can be utilized by any given organization in order gain a competitive advantage by increasing the value of the business, product, or service. Furthermore, Value Chain analysis pinpoints and organization’s core processes and capabilities that play a key role in achieving fundamental corporate and customer value drivers (Walters & Rainbird, 2007, p. 12). “Core business processes are the processes identified by the organization as being central to its strategy for competitive advantage” (Walters & Rainbird, 2007, p. 12). Value chain essential is essential for any business that wants to achieve competitive advantage. A competitive advantage is obtained by creating a number of value creation activities that help an organization gain cost leadership and differentiation. Value chain is a set of activates that are performed in order to generate this value (QuickMBA, 2010, para. 10). This paper will provide a review of value chain, competitive advantage, customer delight, and how they relate to each other. In addition, examples of companies who have succeeded or failed in their value
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