The following will be discussed in this chapter: Value chain management, functional strategies for competitive advantage, functional activities and the value chain. | Management Practices Lecture 13 1 Recap PORTER’S FIVE-FORCES MODEL 2 Today’s Lecture Value Chain Management Functional Strategies for Competitive Advantage Functional Activities and the Value Chain 3 Four Ways to Create a Competitive Advantage 4 Functional Activities and the Value Chain 5 Functional Strategies and Value-Chain Management Value-chain management development of a set of functional-level strategies that support a company’s business-level strategy and strengthen its competitive advantage Good value-chain management requires marketing managers to focus on defining the company business in terms of customer needs 6 6 Good value-chain management requires marketing managers to focus on defining the company business in terms of customer needs 6 What Do Customers Want? Although specifying exactly what customers want is not possible because their needs vary from product to product, it is possible to identify some general product attributes or qualities that most customers . | Management Practices Lecture 13 1 Recap PORTER’S FIVE-FORCES MODEL 2 Today’s Lecture Value Chain Management Functional Strategies for Competitive Advantage Functional Activities and the Value Chain 3 Four Ways to Create a Competitive Advantage 4 Functional Activities and the Value Chain 5 Functional Strategies and Value-Chain Management Value-chain management development of a set of functional-level strategies that support a company’s business-level strategy and strengthen its competitive advantage Good value-chain management requires marketing managers to focus on defining the company business in terms of customer needs 6 6 Good value-chain management requires marketing managers to focus on defining the company business in terms of customer needs 6 What Do Customers Want? Although specifying exactly what customers want is not possible because their needs vary from product to product, it is possible to identify some general product attributes or qualities that most customers prefer: A lower price to a higher price High-quality products Quick service and good after-sales service Products with many useful or valuable features Products that are tailored to their unique needs 7 Although specifying exactly what customers want is not possible because their needs vary from product to product, it is possible to identify some general product attributes or qualities that most customers prefer: 1. A lower price to a higher price. 2. High-quality products to low-quality products. 3. Quick service and good after-sales service to slow service and poor after sales support. 4. Products with many useful or valuable features to products with few features. 5. Products that are, as far as possible, customized or tailored to their unique needs. 7 Customer Relationship Management Customer relationship management technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time 8 Customer Relationship .
