The paper "Analysis by Value Chain and Porter’ s Five Forces Model" is a perfect example of a business case study. Every business has its own unique structure. This includes the divisions, the type of products or services and the target customers. In order to gain the common goal, which is profit, the organizations need to go the extra mile. Many organizations may be engaging in the same products or services hence the need for achieving competitive advantage. Only the best competitor survives in the market. Some of the activities that may be done by a competitor include improving the quality of its products and services, offering value packs and a combination of discounts (O’ Brien, 2009).
Management Information Systems are a great help in generating business intelligence. Porter’ s generic strategies give a description of how a company pursues its competitive advantage across its preferred market boundary where it discusses three generic strategies; lower cost, differentiated or focus whereas value chain is a sequence of operations that an organization performs so as to produce valuable services or products for the market.
These will be discussed below. Company ABC, which deals with products, engages in wholesale business whereby, it provides the best quality and most diverse selection of household goods through offering value packs and combination discount offers. This company pursues its competitive advantages by offering its products at lower costs than the competition. On the other hand, XYZ, a service provider, is a local bank that provides financial services. Company ABC uses the focus scope whereby, it offers its products to selected segments of the market that is the household whereas XYZ provides its services to the entire community.
According to Porter (2005), if a company does not choose one of the three strategies, then there will be wastage of useful resources. The focus strategy describes the extent to which the company competes basing on either cost leadership or differentiation. Like in the Wal-Mart, the firm can choose to compete in the larger market with a scope that is extensive or in a well-defined focused market fragment that deals with constricted scope.
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