Business strategy Essay Example | Topics and Well Written Essays - 1000 words - 2

Business strategy - Essay Example Porter’s value chain provides an important tool for a tool for developing and sustaining competitive advantage for a company. It underlines the need for creating and retailing value for the organisation. Value, in general, can be defined in respect of customers, employees and owners or other stakeholders. Value addition is considered an important ingredient in dealing with the competitions, as it provides the organisation with a strategic tool. An individual’s beliefs or conceptions about what is desirable, good or bad – forms the value system (Kotler, 1974). Innovation, excellence and value go hand in hand in today’s competitive environment. Customers and the target market are crucial stakeholders for any organisation. Configuring value means defining, creating, branding and pricing the offer. The company can acquire competitive advantage on its rivals on account of marketing efforts, brand building, value creation, innovation, operational efficiencies etc. But more important is to sustain the advantage. The value configuration describes how value is created in a company for its customers, how the most important business processes function to create value for customers and the way a particular company/ organization conducts its business. Some of the value addition gradually takes the form of threshold competencies for the organisation, and the consumer starts expecting these value additions from the company. The process of value creation encompasses managing quality in the entire chain of processes leading to the production of final product or service. Quality in essence is delivering superior value to the customer. The value phenomenon is complicated and multifaceted. The term â€Å"value† can be defined in different ways according to the adopted perspective of th e analysis: it is possible to determine a â€Å"customer value†, a â€Å"firm value†, a â€Å"stakeholder value† (Mele and Colurci, 2006). For the companies to identify their sustainable