How We Define Value Creation - 1521 Words

Questions on Chapter 3 1. How we define value creation and how that is related to competitive advantage? A) Value Creation is a process of creating value to a firm’s product and or service. A firm usually follows a chain of steps (value chain) to create value to its product or service in the market. A company’s competitive advantage and its sustainability is directly proportional to the value it creates for its products among the customers. Value creation can be achieved by the following features of the products or services which form the basic building blocks of the competitive advantage. They are a) Superior quality of the product/service b) Efficiency of the firm c) Innovation ability of the firm and d) Customer responsiveness 2. What is value chain and how it is related to efficiency? A Value Chain is a series of activities a company performs to create value for its products and or service in the market. Michael Porter identified five generic types of activities which are most common in the majority of the firms. These activities are interrelated to each other and may include sub-activities and support activities. Support activities of a firm play a crucial role in building competitive advantage over its rivals. The generic activities form the primary value chain of the company which are listed below. a) Inbound Logistics b) Operations c) Outbound Logistics d) Marketing and Sales e) Service The Chain consisting of generic activities can be depicted as below (MichaelShow MoreRelatedHow We Define Value Creation And How It Is Related? Competitive Advantage?1846 Words   |  8 PagesQuestions on Chapter 3 1. How we define value creation and how that is related to competitive advantage? Competitive advantage leads to superior profitability. At the most basic level, a company’s profitability depends on three factors: the value customers place on the company’s products, the price that a company charges for its products, and the costs of creating those products. The value placed on a product by customers reflects the utility they get from a product, or the happiness or satisfactionRead MoreThe Depth Of Co Creation And Value1470 Words   |  6 PagesINTRODUCTION This essay will go into the depth of co-creation and the co-dependent relationship between businesses and their customers. This relationship is becoming more and more prevalent in the digital age we are currently living in. With the development of technologies that make communication a greater part of our lives – we see an increase of interaction between brands and consumers. 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So `Ethics or `morality; some people distinguish between ethics and morality: ethics is a standard of conduct for a particular group; morality is a more general standard) is one of those words in our language that we use every day but we find notoriously hard to define. Websters Dictionary defines ethics as 1. the study of standardsRead MoreProject Management1168 Words   |  5 PagesPART I Introduction Von Bertalaffy (1956) defines a system as a complex of interacting elements. Rapaport defines a system as an entity which can maintain some organization in the face of change from within or without. Ryan defines a system as a set of objects or elements in interaction to achieve a specific goal. In 1936, it was first revealed by Ludwig Von Bertalanffy, a biologist. Just because he witnessed them striking parallel to each other he sensed the need for an approach to lead researchRead More Define Ethics And Social Responsibility Essay1556 Words   |  7 Pagesresponsibility. This essay will define about ethics,social responsibiliy and show how it is going on and how it is importance to manager and global business. So `Ethics or `morality; some people distinguish between ethics and morality: ethics is a standard of conduct for a particular group; morality is a more general standard) is one of those words in our language that we use every day but we find notoriously hard to define. Websters Dictionary defines ethics as 1. the study of standards