Value, Value Chain Analysis and Product Differentiation

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Value, Value Chain Analysis and Product Differentiation Daniel R. Bible Everest University Business Policy and Strategy MAN 4764 Professor Jody Wolf January 24, 2014 Abstract The definition of value can be vague but is often defined as nothing more than what a customer is willing to pay for goods or services, simply put, if a customer is not willing to buy an items it has no value. The value chain analysis evaluates a company’s competitive strength in its industry as to maximize its competitive advantage and couples this with product differentiation as to amplify its products uniqueness, this process is critical as to stand out in an industry. Value, Value Chain Analysis and Product Differentiation When determining the definition of value and why and how a company creates it we see that a product’s ability to perform, its features and qualities as well as what customers are willing to pay are the factors used to create the measurement of value. It is this value of an item or service that is frequently viewed as nothing more than the price it would bring in an open and economical market. This is determined mainly by the demand for the object as it relates to supply. Simply put, objects with no value have no demand and require no supply. It is this perception of value that must be established as to enable a company to sustain and grow. Expense has little to do with value as even more expensive items are still purchased, items such as automobiles as the value and convenience outweighs that of the cost associated with the item. To understand the value chain analysis what is gained by successfully implementing this tool we note that it is used to identify and assess the competitive possibilities of resources and proficiencies. If we understand the skills comparative to those associated with value chain activities and support functions, it is then that we

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