VALUE CHAIN IN DIFFERENT AREAS

Value chains differ considerably across trade sectors and

between different organizations within a trade sector. Value
system in :

• Automobile Assembly,
• Food, Supermarket, And
• Insurance Sector
VALUE CHAIN IN DIFFERENT AREAS
AUTOMOBILE ASSEMBLY
VALUE CHAIN IN DIFFERENT AREAS
Food Supermarket: Food retailer is dividing into two parts
i) Large supermarket chains (direct deal with manufacturer)
ii) Small retailers (deal with wholesaler rather than manufacturer).
VALUE CHAIN IN DIFFERENT AREAS
3) Insurance Sector: Insurance is a service industry
and it is not directly reliant to its suppliers, its
value system is therefore focused on sales.
Insurance policies to the public can be:

i) Sold by an agent (company employee).

ii) Sold by an intermediary (like insurance broker).
iii) Direct sales using telesales or the internet.
Competitive Strategy in Business Strategy in
an Electronic Age
A competitive strategy is a plan that involves research, tactics, and planning to
increase market share and stay ahead of competitors. It involves multiple
business functions, such as product development, advertising, and customer
service.

In the digital age, the internet has shifted the basis of competition to a more
strategic level. This means that businesses should adapt to technological
advancements, embrace innovation, and stay competitive by following a well-
defined strategy.
Competitive Strategy in Business Strategy in
an Electronic Age
Competitive Strategy in Business Strategy in
an Electronic Age
Here are some strategies for staying competitive in the digital age:

• Understand the digital landscape

• Build a strong online presence
• Embrace technology and automation
• Engage with social media platforms
• Implement effective SEO strategies
• Invest in talent development
• Develop a website that works well with mobile devices
• Stay in tune with the latest market trends
• Embrace digital transformation and cloud technologies
• Give your customers a personalized experience
• Prioritize continuous innovation, adaptability, and customer-centric
approaches
• Focus on enhancing customer experiences
• Stay ahead of industry trends
Competitive Strategy in Business Strategy in
an Electronic Age
Porter’s Model of generic business strategies
Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation"
(creating uniquely desirable products and services) and "Focus" (offering a specialized
service in a niche market).

A firm's relative position within its industry determines whether a firm's profitability is
above or below the industry average.

The fundamental basis of above average profitability in the long run is sustainable
competitive advantage.

There are two basic types of competitive advantage a firm can possess: low cost or
differentiation.

The two basic types of competitive advantage combined with the scope of activities for
which a firm seeks to achieve them, lead to three generic strategies for achieving above
average performance in an industry: cost leadership, differentiation, and focus.

The focus strategy has two variants, cost focus and differentiation focus.
Porter’s Model of generic business strategies
Strategic Implications of IT