firm value chain is the set of activities a firm engages in to create final

Firm value chain is the set of activities a firm

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firm value chainis the set of activities a firm engages in to create final products from raw inputs. Each step in the process of production adds value to the final prod-uct.->performs five primary value-adding steps: inbound logistics, operations, outbound logistics, sales and marketing, and after sales service.value webis a networked business ecosystem that uses e-commerce technology to coordinate the value chains of business partners within an industry, or at the first level, to coordinate the value chains of a group of firmsbusiness strategyis a set of plans for achieving su-perior long-term returns on the capital invested in a business firm. A business strategy is therefore a plan for making profits in a competitive environment over the long termProfitis simply the difference between the price a firm is able to charge for its products and the cost of producing and distributing goods. Profit represents economic value. Economic value is created anytime
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customers are willing to pay more for a product than itcosts to producedifferentiationrefers to all the ways producers can make their prod-ucts or services unique and different to distinguish them from those of competitorscommoditizationa situation where there are no differences among products or services, and the only basis of choosing is pricestrategy of cost competitionmeans a business hasdiscovered some unique set of business processes or resources that other firms cannot obtain in the mar-ketplace. Business processes are the atomic units of the value chain. Fscope strategyis a strategy to compete in all mar-kets around the globe, rather than merely in local, re-gional, or national markets. The Internets global reach, universal standards, and ubiquity can certainly be leveraged to assist businesses in becoming global competitors.focus/market niche strategyis a strategy to com-pete within a narrow market segment or product seg-ment. This is a specialization strategy with the goal of becoming the premier provider in a narrow market
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customer intimacy focuses on developing strong ties with customers in order to increase switching costs Business Model Disruption new technologies are at the core of a change in the way business is done, they are referred to as disrup- tive technologies . When the technology involved is digital, the term digital disruption is used. -disruption occurs when an innovative firm applies the technology to pursue a different business model and strategy than existing firms, perhaps discovering a whole new market that existing firms did not even know existed sustaining technologies technologies that enable the incremental improve- ment of products and services disruptors the entrepreneurs and their business firms that lead a business model disruption
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