Week 3 Strategy & Value Chain

Question 1

Strategy is about creating value for who?

Answer 1

All stakeholders including:
- Firm
- FIrm’s Partners
- Customers

Question 2

What are 4 factors that aid in creating Sustainable Competitive Advantage?

Answer 2

1) Durable
2) Not easily replicated
3) Rare
4) Valuable

Question 3

What are some forces that can drive changes in Perceived Value?

Answer 3

1) Familiarity
2) Income / Education
3) Economic Conditions
4) Competitor’s Actions
5) Government Actions

Question 4

Difference between Value & Value Chain?

Answer 4

Value is the price a customer is willing to buy.

Value Chain is the firms ability to disect each product and maximising each products value through finding what it does best and outsourcing other aspects.

Question 5

How does IT aid in Value Creation?

Answer 5

Fundamentally IT allows for us to complete our tasks faster.

Also, allows us to manage & measure goals effectively.

Question 6

What are the common problems when it comes to change & new strategies?

Answer 6

1) Poor Relationships
2) Closed Communication
3) Change Resistence Culture

Question 7

What are Portor’s 5 Force?

Answer 7

1) Customer Bargaining Power
2) Supplier Bargaining Power
3) Threat of New Entrants
4) Threat of Substitutes
5) Competitors in Same Industry

Question 8

What is Positional Value Creation?

Answer 8

By finding a unique spot in the market in-which no other firm is undertaking.

To take up all market share of a niche market. (Porter’s)

Question 9

What is Economic Value Strategy?

Answer 9

Economic value comes from generating value from lower costs;
Price - Cost
Revenue - Cost
Savings - Cost

Question 10

What is Scenario Value Strategy?

Answer 10

Scenario Value comes from gaining popularity and has a less formal structure. It is highly reactive towards what the customers engage with the most.

Question 11

What is the Visionary Value Strategy?

Answer 11

1) Understand Customers
2) Create Value for Customers
3) Competition
4) Value Chain