INSTRUCTIONS: Please RESPOND to this answer from the Point of view as a student. Use credible sources and respond as if you are a manager of a marketing agency. Tell this student what your agency would think of each of these answers:
Value chain activities exists in all the organizations thru which firms make products or services which can give them competitive advantage in the market. They are of two types, primary and support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Any of these activities could be vital in gaining competitive advantage (Carpenter & Sanders, p.82, 2008).
Support activities include accounting, human resources, technology, and procurement. These are considered overhead but it can be used to create competitive advantage such as innovation thru technology.
Performing value chain activities better ways which is short lived but if firms create altogether different ways than rival firms it gives longer term advantage.
My company which is more like publishing company has primary activities or company infrastructure dependent activities has been finding innovating ways to provide product or services such as it has come up with product similar to Facebook but more related to particular profession where person can collaborate and share their ideas, ask questions or meet other likeminded people. Company always try to come up with new ways of doing things, or improving existing processes which are short lived but since it doesn’t face stiff competition, it has advantage in terms of market.
My company has revamped lots of support functions by either installing new system or doing automization in functions such as in accounting where every invoice goes thru computer, there is hardly any printing of paper required. They also installed web based etime system and web based financial system which can be accessed from anywhere. It also in process of installing new reporting system where any financial or management reports can be printed in click of a button.
The value chain is useful in outsourcing decisions. So linkages between different activities need to be established so that better make or buy decisions can be made that can result in either cost advantage or differentiation advantage.
1)M. Carpenter & Wm. Sanders (2008). Strategic Management. A Dynamic Perspective. Upper Saddle River, N.J: Prentice Hall.