Sample Essay

Value chain is considered to be the integral part of different organizations and if it is implemented properly then it can help the organization to achieve its long term and short term objectives. In order to create and sustain a competitive advantage in an industry an organization can either opt for cost leadership or differentiation strategy (Barney 2006).
Similarly an organization must identify which activities are leading towards cost leadership and which towards differentiation. Similarly, cost advantage can be attained by reducing the cost of individual value chain activities or by transforming the entire value chain. Similarly an organization must identify which activities are leading towards cost leadership and which towards differentiation. Similarly, cost advantage can be attained by reducing the cost of individual value chain activities or by transforming the entire value chain (Porter 1998).

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