Tuesday, October 15, 2019
How Activities A Company Chooses To Carry Out Within The Value Chain Case Study
How Activities A Company Chooses To Carry Out Within The Value Chain Can Help Companies Achieve Competitive Advantage - Case Study Example This paper illustrates that Dahl posits to the effect that many decisions made by the company are meant to give it competitive advantage so that it can operate viably. This notion is supported by Arline who states that; ââ¬Å"Value chain analysis relies on the basic economic principle of advantage ââ¬â companies are best served by operating in sectors where they have a relative productive advantage compared to their competitors.â⬠In this case, a company chooses to pursue activities that will give it a competitive advantage through taking into consideration aspects such as product design, marketing, and distribution, all which fall under the ambit of value chain analysis. Indeed, the company should set precedence in determining the strategies that can be implemented in order for it to create and sustain a value chain that in turn can also sustain its operations in the long run. For instance, Whole Foods Market has managed to achieve competitive advantage through leveraging on its value chain specifically designed to offer organic food products to the customers. As people become conscious about their health, this strategy has helped the company to gain a competitive advantage as the customers switch to organic foods. The strength of the company lies in its capability to differentiate the products it offers to the customers. There are other competitors emerging in the organic foods sector but according to Whole Foods Marketââ¬â¢s official website, the company has managed to gain a significant market share by virtue of maintaining a unique value chain that is characterized by quality organic products. Its products also have premium prices that are specifically meant to denote quality.
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