BUS350 - Ch.11

Differentiation 2 lowcost 6 of 40

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Unformatted text preview: e firm can charge for that product given competitive pressures) and • C (the costs of producing that product) The two basic strategies for creating value are 1. differentiation 2. low cost 6 of 40 Strategic Positioning A firm’s strategy, operations, and organization must all be consistent with each other in order to achieve a competitive advantage and superior profitability. 7 of 40 Operations: The Firm as a Value Chain Firms are essentially value chains composed of a series of distinct value creation activities, including production, marketing, sales, materials management, R&D, human resources, information systems, and the firm infrastructure. Value creation activities can be categorized as 1. primary activities 2. support activities 8 of 40 Operations: The Firm as a Value Chain 1. Primary Activities: involve creating the product, marketing and delivering the product to buyers, and providing support and after‐sale service to the buyers of the product 2. Support Activities: provide the inputs that allow the primary activities of production and marketing to occur 9 of 40 Operations: The Firm as a Value Chain The Value Chain 10 of 40 Organization: The Implementation of Strategy Organization architecture refers to...
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This document was uploaded on 03/05/2014.

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