BUS350 - Ch.11

Differentiation 2 lowcost 6 of 40

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online