Value chain

About: Value chain is a research topic. Over the lifetime, 7206 publications have been published within this topic receiving 224183 citations.

Why Business Model Innovation Is the New Competitive Advantage

Abstract: IntroductionMichael Porter, a relatively unknown face at Harvard Business School during 1985, published a book, Competitive Advantage The book highlighted that companies have to optimize their value chain in order to consistently outperform their rivals Porter highlighted that the firm can have competitive advantage either by focusing on low cost or the differentiation strategy The book became an instant success in academics and in industry and that is from where Michael Porter became The Michael Porter Over the years, the basic building blocks of business model have changed and Porter's work has been put to question Rita Gunther McGrath in her book, The End of Competitive Advantage has contended that sustainable competitive advantage in today's turbulent business environment is no longer possible and has in fact advised firms to seek out transient advantage Further, many other researchers have criticized Porter's idea of cost and differentiation as a competitive advantage because first, it is very difficult for a firm to calculate its own and competitors' cost of operations, second, new products and services are easily imitated Further, research has shown that value for money has become a preferred strategy for businesses success, and according to Porter it is being stuck in the middle of the road and an absolute guarantee of failureLooking at today's business scenario, neither view holds true and none represents today's fast changing business environment Companies like Uber, Airbnb and Xiaomi have been able to dominate their respective industries because of their unique business models According to Osterwalder and Pignuer (2010), business model describes the rationale of how an organization creates, delivers and captures value These companies have totally disrupted their respective industries by changing the basic building blocks of their business models These companies, beyond any doubt, have been able to dominate and in some way monopolize their industries Studying these companies little closely, it is obvious that the source of competitive advantage has changed They have no revolutionary products and services but unique business models Business model innovation has helped these companies to deliver more sales, higher profit margins and greater cash flows than their competitors These companies have no defined value chains and have in fact no fixed costs in terms of plants and machineryEconomist Intelligence Unit (2012) surveyed more than 4,000 senior executives worldwide on the subject of innovation The findings highlighted that executives do not prefer new products and services as source of future competitive advantage but new business models A similar type of study by IBM (2006) highlighted that due to intensive global pressures, the focus of top executives on business model innovations has increased and reached much higher than expected before The study further highlighted that companies who outperformed their rivals and whose operating margins have grown at a much greater pace in the last five years were putting twice as much focus on the business models as the underperforming companiesRelevance of Porter's Competitive AdvantageIn late 1980s, Michael Porter published a book, Competitive Advantage, which in no time became the bible of businesses and academicians There have been many management ideas and books that sold millions of copies over the last couple of decades, but none has been as influential as Porter's Competitive Advantage Porter argued that a company can achieve competitive advantage by providing buyers more value at a lower cost (low cost) than their competitors, or by performing activities in unique ways that create more value than their competitors and therefore charge a premium price (differentiation) Porter suggested that a firm can dominate its competitors either by being cheap or by being different or perceived to be different by customers …

Value Chains of Agricultural Commodities and their Role in Food Security and Poverty Alleviation- A Synthesis

Abstract: Agri-food systems are undergoing rapid transformations and the emergence of integrated food supply chains is one of the most visible market phenomena in India. Increasing concentration on processing, trading, marketing and retailing is being observed in all the segments of supply chains. The traditional way of food production is being replaced by practices more akin to manufacturing processes, with greater co-ordination across farmers, processors, retailers and other stakeholders in the value chain. Further, with increase in income, the pattern of food consumption is changing. Demand for high-value commodities like fruits, vegetables, livestock products, fisheries and edible oils is growing and farmers are trying to diversify their production systems accordingly. On the other hand, consumers are becoming more demanding in terms of quality and safety of food commodities. In addition, demographic and income trends are inducing more enlightened consumers to demand convenience foods such as frozen, pre-cut, pre-cooked and ready-to-eat items, together with assurances of product quality and safety. Consequently, production, processing and distribution systems are adapting to such changes.

Farmer Groups Enterprises and the Marketing of Staple Food Commodities in Africa

Abstract: "There are some apparently successful cases of collective marketing with staple food commodities (grains and root crops), but these are less common than cases involving higher value agricultural products. These can be attributed to the benefit/cost ratio to participants being generally higher for collective marketing of the higher-value crops. Some of the costs are ‘hidden', in the sense that they are borne by individuals in time spent in attending meetings, and not shown in the financial statements of the enterprises concerned. Examining a series of cases, the paper advocates an approach to the marketing of staples which involves analyzing the value chain and identifying those activities which on the one hand, best lend themselves to individual initiative, and those where on the other hand, group approaches are more likely to prosper. Dual purpose food marketing involving village storage in anticipation of both external market opportunities and local lean season shortages usually falls into the former category. Collective initiatives have a higher probability of success when they complement agricultural intensification and involve bulking substantial quantities of produce for quality-conscious commercial buyers. Prospects for successful collective marketing are moreover greater where there is a history of collective endeavor, where focused on simple activities like bulking and distribution of inputs, where primary groups are small and homogenous in terms of interests and objectives, where they can establish lasting relationships with strong trade counterparties, where supported by effective training (especially re attitudes, numeracy, and business skills), where they can access effectively managed storage and inventory credit services, and where there is framework of law enforcement. The immediate poverty alleviation and programmatic priorities of funding agencies often undermine the effectiveness of promotional activities in support of collective marketing. This problem may be addressed by instituting systems of independent review and peer review processes, and involving open discussion of pros and cons of individual and collective approaches." authors' abstract

Corporate turnaround through effective supply chain management: the case of a leading jewellery manufacturer in India

Abstract: Purpose – This paper aims to examine how creative industries can adopt supply chain management (SCM) approaches to achieve business excellence.Design/methodology/approach – The paper is based on case research of supply chain (SC) integration in a jewellery‐manufacturing organisation.Findings – Organisations in the creative industries such as jewellery can achieve superior performance through systematic supply chain planning and implementation. Integrating SC planning with business planning, persistent commitment of the top management and making use of cross‐functional teams for implementation are some of the key determinants of SCM.Research limitations/implications – The paper presents a basis for understanding the scope for adopting SCM approaches in creative industries. Future research may be directed to identify and evaluate the parameters of successful adoption of SCM approaches in other creative industries. The research has the generic limitation of generalisability. However, it provides an insight i...