Value Chain Competitive Advantage

Steve Denning (2011), states that customer delight is the firm’s new bottom line and delighting the customer from outsets to outcomes. By focusing on delighting the customer the firm makes a lot more money than they would if they set out to make money. Delighting the customers make a lot of money. Customer delight = providing a continuous stream of additional value to customers and delivering it sooner. It is measurable and means a different way of running the company.

In light of recent growth of domestic and foreign countries outsourcing and off shoring over seas, companies been taken advantage of the cheap labor cost for outsourcing and off shoring manufacturing. Competitive business investing in domestic and foreign manufacturing have affects every part of the business industries from design, software development, finances and logistic management, i.e., customer and sales. Nevertheless, outsourcing been praised by businesses for outcomes of cost-effectiveness, efficient, productive and strategic, but damned as malicious, because of companies’ greediness, detrimental, and brutal in the public eyes.

First advantage of outsourcing is that the organization is in the position to ensure that it is able to complete its activities in a swift and expert manner. Second advantage of outsourcing is that it helps organization to concentrate on core process instead of supporting processes carried out by it. Third advantage of outsourcing is that the organization will be in the position to ensure that it is engaged in activities of risk sharing over a period of time (Carroll, 2007). First disadvantage of outsourcing is that the organization will have risk of exposing confidential data. Second disadvantage of outsourcing is that it can cause some problem to

Customer satisfaction is the customer’s evaluation of a good or service in terms of whether it has met their needs and expectations (Vander Schee, 2016). The culture of the organization is to focus on delighting customers rather than on selling products (Lamb, Hair, & McDaniel, 2017). An example of a highly satisfied customer would be Nicole Snow, who owns a small business in Maine. One day she reached out to FedEx on social networks and asked for help in getting her supply chain set up. The team responded immediately and helped her solve the problem (“FedEx,” 2015). Here customer satisfaction is greatly shown the customers’ needs and expectations have been met by

It’s essential that companies or businesses today listen to their customers. No company or business today can afford to disregard the importance of customer satisfaction and loyalty. Aren’t they the same thing? No, they are absolutely not and they are enormously

Corporate and operational managers strive to create more value by optimizing the supply-chain activities. Optimization of supply chain activities means competition from other firms, primarily on cost-efficiency. However, optimization of supply chain activities alone cannot always yield a source of competitive advantage. This is for the simple reason that value chain not only seeks to do away with the activities that do not add value, but establishes the importance of other support activities, including infrastructure, technology, and so on, that play a vital role in providing the foundation for competitive advantage. Value chain's primary activities are similar to the primary functions of the supply chain. Where supply chain focuses on

Today’s organizations fail to realize the value of their customers when it comes to the success of their business. Without customer loyalty the success of your business will always be uncertain. Organizations must sensitively tailor the designs of a successful firm to the particular challenges of understanding, attracting, and keeping valuable customers. “Having satisfied customers just aren’t good enough”. Kenneth Blanchard and Sheldon Bowles, co-authors of Raving Fans, believe this concept is needed to have a successful business. I agree with this concept of customers being the focal point of any business. I would want more than just a satisfied customer; I want a “Raving Fan”.

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

Outsourcing can be defined as ‘the strategic use of outside sources to perform activities traditionally handled by internal staff and resources’. In this strategy, the organizations contract out major functions of their manufacturing products to more specialized and efficient service providers, who later become valued business partners. It looks more like a simple supplementation of resources by subcontracting, but it is actually different to outsourcing. In actual outsourcing, the organization is also involved in substantial restructuring of particular business activities including, often, the transfer of staff from a host company to a specialist, usually smaller, company with the required core competencies. The current stage in the evolution of outsourcing is all about the

The strategic effort of outsourcing is to allow concentration on what the organization does best. In addition, outsourcing assist companies to acquire cost advantage by tabbing into cheap labour; identifying companies with high competency level in the area outsourcing is required; and adds value to the overall process of the organization. However, it is important to note that as mentioned by Child (2005) if outsourcing is not carefully considered the organization may be prone to failure. Therefore, it is very crucial that various elements be thoroughly considered before deciding on what aspect of the organization to outsource.

Now a day, many companies are trying to improve their value chain in order to use the value chain as a strategy in the manner of meeting the customers need and satisfaction. One of the strategies they are using with value chain is to gain competitive advantages for rival among their competitors. Value chain actually can discover and fulfil what customers want and the identification of customer needs will hence become one of the ways to surpass their competitors in term of competitive advantages. Customers can have the best satisfaction of the things that they really want, at an acceptable price level. In other words, a company overall competitive advantage derives from the difference between

As a student of Masters of Business Administration specialization in general management with the background of Bachelor of Industrial engineering the writer has four years experiences in the automobile industry. These experiences and background help me to understand the role of customer satisfaction in terms of organization profitability.

Over the past decade or more, outsourcing is becoming an essential success factor. Many multinational organizations rely on outsourcing for a variety of products and services such as technology, customer support, automobile, clothes, telecommunication products and many more (Gottschalk, 2006). Outsourcing is an excellent process when it comes to cost advantage. Additionally, it provides organizations the time and workforce to focus on organization’s core business capabilities (Gottschalk, 2006).

There are a variety of factors that outline the significance of outsourcing and its rapid growth over the years. Firstly, there has been an “increased desire on the part of organisations to focus efforts on core activities, which are the source of competitive advantage” (Wilton, 2011). This allows the organisation to invest all efforts

Outsourcing will increasingly be used to stimulate the creation of value and innovation in organizations. Enterprises will use outsourcing as a tool to consistently position themselves at the forefront of their industries, turning to the best talents, resources and opportunities, and sometimes using outsourcing to access new markets.