There are certain scopes that are linked with the competitive advantage of the value chain. These scopes are discussed below:
• Segment Scope: The differences in the value chain that is required by different markets. These differences serve different product or buyer segment.
• Vertical Scope: This scope contains the division of activities which are between a firm and its suppliers, buyers and different channels.
• Geographic Scope: This scope caters and is related with the different geographic areas.
• Industry Scope: The interrelationships among the business units are included in this scope.
The point of achieving a competitive advantage through strengthening up the value chain is quite simple. When an organization improves its product quality and opts for a differentiating strategy then the organization has to perform the activities of value chain in a better manner as compared to its competitor. Core emphasis of the organization is laid on the strategy used and how processes are linked with it. Therefore, it can be easily said that value chains are quite essential in providing values oriented services to all of its stakeholders (Day & Reibstein 2004). Similarly, if an organization opts for a cost leadership strategy then the organization has to reduce the costs that are associated with the value chain activities and the policy of reduction in the total amount of resources can be implemented (Day & Reibstein 2004). This would enhance the effectiveness of the products and services and through this strategy the organizations strengths are enhanced.
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