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    INTRODUCTION

    Value chain analysis is a powerful managerial tool for identifying which activities in the chain

    have competitive advantage potential. It can be defined as a vital method of relating resources to

    the strategic purposes for which these resources are to be used.

    A value chain is a chain of activities for a firm operating in a specific industry. The business unit is

    the appropriate level for construction of a value chain, not the divisional level or corporate level.

    Products pass through all activities of the chain in order, and at each activity the product gains

    some value. The chain of activities gives the products more added value than the sum of added

    values of all activities.

    Value chain analysis is a powerful tool for managers to identify the key activities within the firmwhich form the value chain for that organization, and have the potential of a sustainable

    competitive advantage for a company. Therein, competitive advantage of an organization lies in

    its ability to perform crucial activities along the value chain better than its competitors.

    The value chain framework of Porter (1990) is an interdependent system or network of

    activities, connected by linkages. When the system is managed carefully, the linkages can be a

    vital source of competitive advantage. The value chain analysis essentially entails the linkage of

    two areas. Firstly, the value chain links the value of the organizations activities with its main

    functional parts. Then the assessment of the contribution of each part in the overall added value

    of the business is made (Lynch, 2003).

    In order to conduct the value chain analysis, the company is split into primary and support

    activities. Primary activities are those that are related with production, while support activities are

    those that provide the background necessary for the effectiveness and efficiency of the firm, such

    as human resource management. The primary and secondary activities of the firm are discussed

    in detail below.

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    Primary activities

    The primary activities (Porter, 1985) of the company include the following:

    Inbound logistics. These are the activities concerned with receiving the materials fromsuppliers, storing these externally sourced materials, and handling them within the firm.

    Operations. These are the activities related to the production of products and services. This

    area can be split into more departments in certain companies. For example, the operations in

    case of a hotel would include reception, room service etc.

    Outbound logistics. These are all the activities concerned with distributing the final product

    and/or service to the customers. For example, in case of a hotel this activity would entail the

    ways of bringing customers to the hotel.

    Marketing and sales. This functional area essentially analyses the needs and wants of

    customers and is responsible for creating awareness among the target audience of the company

    about the firms products and services. Companies make use ofmarketing communications tools

    likeadvertising, sales promotionsetc. to attract customers to their products.

    Service. There is often a need to provide services like pre-installation or after-sales service

    before or after the sale of the product or service.

    Support activities.

    The support activities of a company include the following:

    Procurement. This function is responsible for purchasing the materials that are necessary for

    the companys operations. An efficient procurement department should be able to obtain the

    highest quality goods at the lowest prices.

    Human Resource Management. This is a function concerned with recruiting, training,

    motivating and rewarding the workforce of the company. Human resources are increasingly

    becoming an important way of attaining sustainable competitive advantage.

    Technology Development. This is an area that is concerned with technological innovation,

    training and knowledge that is crucial for most companies today in order to survive.

    Firm Infrastructure. This includes planning and control systems, such as finance, accounting,

    and corporate strategy among others

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    Placing for orders. Here, the Coca Cola Company uses order processing system which

    processes the requirements of the customers and sends the information into the supply chain

    via logistics information system. The orders go into the manufacturers warehouse where it is

    checked whether the product is in stock. If the product is in stock, the order is fulfilled and

    managements are made; if the product is not in stock, a replenishment request is triggered that

    finds its way to the factory floor. This therefore makes the company to have a competitive

    advantage.

    Material handling. The company uses material handling system which moves inventory into,

    within and out of the warehouse. It includes functions like receiving goods; identifying, sorting

    and labeling of goods; dispatching the goods to temporary storage area; recalling, selecting or

    picking the goods for shipment.

    The company uses material handling system to moves items quickly with minimum

    handling compare to other companies that use non-automated material handling system.

    Stock control. Coca-cola Company uses inventory control which develops and maintains an

    adequate assortment of materials or products to meet a manufacturers or customers demands.

    Inventory decisions, for both material and finished goods have a big impact on supply

    chain costs and the level of service provided. Inventory management therefore helps the

    organization to keep inventory levels as low as possible while maintaining an adequate

    supply of goods to meet customers demands. This therefore enables the organization to

    sustain its competitive advantages over its competitors.

    Transport. Coca- Cola Company uses different mode of transporting goods basing on the basis

    of several criteria for cost, transmit time, reliability, capacity, accessibility and traceability.

    Sometimes, the company uses transport network which replaces the warehouse or eliminate the

    expense of storing inventories because goods are timed the moment they are needed on theassembly time or for shipment to customers. This helps the organization to attain and sustain its

    competitive advantage over its competitors.

    2) Operations

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    Machining. Coca Cola Company uses the updated techniques to convert raw materials into

    finished goods. Initiatives taken in the operations include efficient plant operations to minimize

    costs, an appropriate level of automation in manufacturing, quality production control system

    to reduce costs and hence quality and efficient plant lay out and work flow design.

    Packaging. The company essentially produces syrups and concentrates and then sells them to

    authorized bottling and canning operations that package and distribute the final product.

    Bottlers combine the syrup with carbonated water or combine the concentrate with sweeter

    and water and/or carbonated water to produce to produce a finished beverage. Finally, the

    beverage is packaged in cans or bottles and then transported to ware house or to customer

    location.

    Labeling. The way of labeling used by the company takes two forms in that it uses persuasive

    labeling which focuses on promotional theme and informational labeling which helps

    consumers make proper product selection and lower their cognitive dissonance after the

    purchase. This enables the company to sustain its competitive advantage.

    Assembling. This is where Coca-Cola Company uses the automated system for assembling it

    products. For the case of sodas, the bottles are covered by a machine which save time and

    reduces on the cost of employing many people if the work is to be done manually.

    3) Outbound logistics.

    Storing. The company uses different methods of storing its goods.

    Departmental stores which carries a wide variety of shopping and especially goods.

    Purchases are generally made with each department at one central check-out-area. Each

    department is treated as separate center to achieve economies in promotion, buying, service

    and control.

    There is also specialty stores format which allows retailers to refine segmentation strategies

    and tailor their merchandise to specific market target system which develops and maintains

    an adequate assortment of materials or products to meet a manufacturers or customers

    demands.

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    Warehousing. The company has got an apartment where large quantities of goods are stored.

    Warehousing helps the company mange supply and demand or produce products for

    consumption. It provides time utility to buyers and sellers, which means that the seller stores

    the product until the buyer wants/needs it. Even when products are used regularly not

    seasonally, the company store excess product in the demand surpasses the amount produced at

    a given time. This therefore reduces the cost of theft, insurance, and spoilage hence enabling

    the company to sustain its competitive advantage.

    Stock control. Coca-cola Company uses inventory control which develops and maintains an

    adequate assortment of materials or products to meet a manufacturers or customers demands.

    Inventory decisions, for both material and finished goods have a big impact on supply chain costs

    and the level of service provided. Inventory management therefore helps the organization to keep

    inventory levels as low as possible while maintaining an adequate supply of goods to meet

    customers demands. This therefore enables the organization to sustain its competitive advantages

    over its competitors.

    Material handling. The company uses material handling system which moves inventory into,

    within and out of the warehouse. It includes functions like receiving goods; identifying, sorting

    and labeling of goods; dispatching the goods to temporary storage area; recalling, selecting or

    picking the goods for shipment.

    The company uses material handling system to moves items quickly with minimum handling

    compare to other companies that use non-automated material handling system.

    Transportation. Coca- Cola Company uses different mode of transporting goods basing on the

    basis of several criteria for cost, transmit time, reliability, capacity, accessibility and

    traceability.

    Sometimes, the company uses transport network which replaces the warehouse or eliminate the

    expense of storing inventories because goods are timed the moment they are needed on the

    assembly time or for shipment to customers. This helps the organization to attain and sustain its

    competitive advantage over its competitors.

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    4) Marketing and sales.

    Coca-Cola Companys marketing is to increase volume, expand worldwide share of nonalcoholic

    ready-to-drink beverage sales, maximize long term cash flow and create added shareholder value

    by improving profit margins. Some of the activities under marketing include the following:

    Sales administration. The company has got a sales administrator who takes up responsibility to

    ensure that sales are made at maximum level. The sales administrator has played a vital role by

    doing the following: defining the sales goals and the sales force, determining the sales force

    structure, recruit and train the sales force, compensate and motivate the sales force and evaluate

    the sales force.

    All these tasks undertaken by the sales administrator has enabled the organization to sustain its

    competitive advantage over its competitors.

    Advertisement. The marketing manager of Coca- Cola Company has used different types of

    advertisement to market the product like advocacy advertisement, competitive advertisement

    using media like television stations, newspapers, radio stations, internet and posters.

    Sales promotion. This offers an incentive to buy the companys products. This is because it is

    targeted towards different markets. The company uses it to stimulate immediate increases in

    demands by lowering price or adding value. It is aimed at end consumers, trade consumers and

    sometimes the companys employees.

    The major sales promotion that the company uses include free samples, contests, premiums, trade

    shows, vacation, give away and coupons.

    Personal selling. This is where the sales person faces customers or talk to them on phone in an

    attempt to persuade the buyer to accept a point of views or convince the buyer to take some to

    take some. The sales person sometimes offers trade discount to increase sales.

    Public relations. This is where coca-cola company uses large sums to build a positive public

    image. Public relations help the company communicate with its customers, suppliers,

    stockholders, government officials, employees and the community in which it operates. Public

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    relations also maintain a positive attitude and also to educate the public about the goals and

    objectives, introduce new products and help support the sales effort.

    5) Service.

    Customer service is a central value adding activity. Coca-Cola Company is redefining the way it

    manages its customer services. Customer service include activities and processes such as effective

    use of procedures to solicit customer feedback and to act on information, quick response to

    customer needs and emergencies, the ability to furnish replacement products as required, effective

    management of product inventory, quality of service personnel and ongoing and appropriate

    product quality promises.

    Customer service is so important as a competitive weapon because it enables the company to create

    value immediately before customers eyes.

    Support activities

    1) Procurement.

    Holding stock. Coca-cola Company uses inventory control which develops and maintains an

    adequate assortment of materials or products to meet a manufacturers or customers demands.

    Inventory decisions, for both material and finished goods have a big impact on supply chain costs

    and the level of service provided. Inventory management therefore helps the organization to keep

    inventory levels as low as possible while maintaining an adequate supply of goods to meet

    customers demands. This therefore enables the organization to sustain its competitive advantages

    over its competitors.

    Clearing and forwarding. This is where the company procurement department checks on the

    goods or raw materials ordered for whether they are the right quality. This enables the

    organization to have quality raw material and reduces on the cost of acquiring items which are

    likely to get spoilt hence enabling the company to gain and sustain its competitive advantage.

    Warehousing. The company has got an apartment where large quantities of goods are stored.

    Warehousing helps the company mange supply and demand or produce products for

    consumption. It provides time utility to buyers and sellers, which means that the seller stores

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    the product until the buyer wants/needs it. Even when products are used regularly not

    seasonally, the company store excess product in the demand surpasses the amount produced at

    a given time. This therefore reduces the cost of theft, insurance, and spoilage hence enabling

    the company to sustain its competitive advantage.

    2) Technology development.

    Raw material improvement. The organization acquires the raw material ordered for and then

    uses an automated system to sort these raw materials before they are processed. This will to

    quality products because the cost of producing poor quality goods is minimized. This will lead

    to sales due to increased demands hence sustaining the competitive advantage of the company.

    Product development. This refers to the concept, design and commercialization of new

    products. Recent examples used by the company include Dasani Plus, Enhanced Minute

    Products and Enviga as described in the product strategy section.

    Product design improvement. Here, the company uses new technology and simplified

    production techniques which help lower the average cost of production. These technologies

    include Computer-Aided-Design and Computer-Aided-Manufacturing and increasingly

    sophisticated robots. These techniques help the company reduce their manufacturing costs and

    enable them to have unique products which enable the company sustain its competitive

    advantage.

    Process development. This refers to the use of new procedures, practices or equipment to

    improve the value adding activity itself. One of the ambitious projects Coca-Cola Company is

    implementing under process development is the Six-Sigma project. The company is

    implementing Six-Sigma under the heading of Business Process Excellence, a complete

    program to help run the business. This differs from the approach many companies are taking,

    where firms are narrowly implementing Six-Sigma today in manufacturing, and do not see it away to run and mange the entire business- merely a tool to improve a process or an operation.

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    3) Human resource.

    Recruiting. The company recruits employees both internally and externally. Internally the

    company considers present employees as candidates. This is intended to have high quality

    employees and to build morale.

    Externally, the company uses internet to recruit new employees. It also uses employment agencies,

    advertisement, executive search firms, and union hiring halls. All these are intended to have

    qualified employees who will produce unique products at low cost to sustain the competitive

    advantage of the company.

    Training. Coca-Cola University (CCU) is a virtual global university representing a one stop

    shop for all learning and capability building activities across the Coca-Cola Company. This

    university aims at providing experiences that equip people with practical skills and knowledge

    to win in the marketplace. Employees can take classes in a range of areas including People

    Leadership, Franchise Leadership, Consumer Marketing and Customer/Commercial

    Leadership. Additionally, this university conducts best practice research and provides

    coaching/consulting services with a view to transfer learning between different parts of the

    Coca-Cola franchise system.

    Rewarding. The company takes a holistic view of all the elements to reward and recognize

    employees to ensure a complete, comprehensive package of pay benefits and learning and

    development programs, including Coca-Cola University. All these are designed to unleash the

    employees full potential.

    Performance appraisal. The company uses performance appraisal to assess how well their

    workers are doing their job. This is because it assesses the impact of training programs.

    Performance appraisal also helps in decision making about promotion and dismissal. This helps

    the organization to have quality employees who can produce unique and at low cost hence

    enabling the company to have a competitive advantage over its competitors.

    4) Infrastructure.

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    Planning. SEM-BPS (Systems Enterprise Management- Business Planning and Simulation)

    provides the company with a complete suite of planning function for modeling, simulation,

    integrated budgeting, target setting, forecasting, scenario planning, resource allocation and risk

    evaluation. This enables the company to perform business planning at the strategic and

    operational level around all financial issues like sales, price, cost, headcount, profitability and

    financial statements.

    Financing. Using SEM-BPS (Systems Enterprise Management- Business Planning and

    Simulation) the company can now integrate actual data into its planning process for the actual

    budget and monthly rolling estimates. This is the foundation to be able dynamic business-

    strategy models and analysis and stimulation of tools to identify the impact of possible actions

    on the profit and loss, balance sheet and overall corporate strategy. Inventor relations involve

    responding to calls from investors, preparing materials and ongoing to visit various analysts.

    Quality control. Coca-Cola Company ensures quality and safety of its beverages through The

    Coca-Cola Quality System (TCCQS). This system is an integrated approach to managing

    quality, environment, health and safety. TCCQS is a worldwide initiative involving every

    aspect of the business. Everyone who works for or with Coca-Cola Company is empowered

    and expected to maintain the highest standards of quality in products, processes and

    relationships. TCCQS mandates in-depth self-assessment throughout operations, by all

    business units. This enables the company to continually raise the standards thus sustaining its

    competitive advantages over its competitors.

    Question2

    Strategy implementation represents a pattern of decisions and actions that are intended to carry out

    the plan. Strategy implementation involves managing stakeholder relationships and organizational

    resources in a manner that moves the business toward the successful execution of its strategies,

    consistent with its strategic direction. Implementation activities also involve creating an

    organizational design and organizational control systems to keep the company on the right course.

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    The managerial task of implementing and executing the chosen strategy entails assessing what it

    will take to take the strategy work and to reach the targeted performance on schedule- the

    managerial skill is being good at figuring out what must be done to put the strategy in place,

    execute it proficiently, and produce good results. Managing the process of implementing and

    executing strategy is primarily a hands-on, close-to-the-scene administrative task that includes the

    following principal aspects:

    o Building an organization capable of carrying out the strategy successfully.

    o Developing budgets that steer resources into those internal activities critical to strategy success.

    o Establishing strategy-supportive policies and operating procedures.

    o Motivating people in ways that induce them to pursue the target objectives energetically, and if

    need be, modifying their duties and job behavior to better fit the requirement of successful

    strategy execution.

    o Tying the reward structure to the achievement of targeted results.

    o Creating a company culture and work climate conducive to successful strategy implementation

    and execution.

    o Installing information, communication, and operating systems that enable company personnel

    to carry out their strategic roles effectively day in a day out.

    o Instituting best practices and programs for continuous improvement.

    o Exerting the internal leadership needed to drive implementation forward and to keep improving

    on how the strategy is being executed.

    However, strategy implementation often considered the most difficult stage in the strategic-management process because strategy implementation requires a firm to establish annual

    objectives, devise policies, motivate employees, and allocate resources so that formulated

    strategies can be executed. Often considered to be the most difficult state in strategic management,

    strategy implementation requires personal discipline, commitment, and sacrifice. Successful

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    strategy implementation hinges upon managers' ability to motivate employees, which is more an

    art than a science.

    The strategy implementation task is easily the most complicated and time consuming part of

    strategy management. It cuts across virtual all facets of managing and must be initiated from many

    points inside the organization. The strategy implementers agenda for action emerges from careful

    assessment of what he organization must do differently and better to carry out the strategic plan

    proficiently. Each manager has to think throughout the answer to to what has to be done in my

    area to carry my piece of strategic plan, and how can I best get it done? how much internal change

    is needed to put the strategy into place depends on the degree of strategic change, how far internal

    practices and competencies deviate from what the strategy requires, and how well strategy and

    organizational culture already match. As needed changes and actions are identified, management

    must see that all the details of the implementation are attended to and apply enough pressure on the

    organization to convert objectives into results. Depending on the amount of internal change

    involved, full implementation can take several years.

    Conclusion

    The value chain analysis shows that the value chain of a company may be useful in identifying and

    understanding crucial aspects to achieve competitive strengths and core competencies in the

    marketplace. It also reveals how the value chain activities are tied together to ultimately create

    value for the consumer. Analysts conducting the value chain analysis should break down the key

    activities of the company according to the activities entailed in the framework, and assess the

    potential for adding value through the means of cost advantage or differentiation. Finally, it is

    important to determine strategies that focus on those activities that would enable the company to

    attain sustainable competitive advantage.

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    Question 2

    Strategy implementation represents a pattern of decisions and actions that are intended to carry out

    the plan. Strategy implementation involves managing stakeholder relationships and organizational

    resources in a manner that moves the business toward the successful execution of its strategies,

    consistent with its strategic direction. Implementation activities also involve creating an

    organizational design and organizational control systems to keep the company on the right course.

    The managerial task of implementing and executing the chosen strategy entails assessing what it

    will take to take the strategy work and to reach the targeted performance on schedule- the

    managerial skill is being good at figuring out what must be done to put the strategy in place,

    execute it proficiently, and produce good results. Managing the process of implementing and

    executing strategy is primarily a hands-on, close-to-the-scene administrative task that includes the

    following principal aspects:

    o Building an organization capable of carrying out the strategy successfully.

    o Developing budgets that steer resources into those internal activities critical to strategy success.

    o Establishing strategy-supportive policies and operating procedures.

    o Motivating people in ways that induce them to pursue the target objectives energetically, and if

    need be, modifying their duties and job behavior to better fit the requirement of successful

    strategy execution.

    o Tying the reward structure to the achievement of targeted results.

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    o Creating a company culture and work climate conducive to successful strategy implementation

    and execution.

    o Installing information, communication, and operating systems that enable company personnel

    to carry out their strategic roles effectively day in a day out.

    o Instituting best practices and programs for continuous improvement.

    o Exerting the internal leadership needed to drive implementation forward and to keep improving

    on how the strategy is being executed.

    However, strategy implementation often considered the most difficult stage in the strategic-

    management process because strategy implementation requires a firm to establish annual

    objectives, devise policies, motivate employees, and allocate resources so that formulated

    strategies can be executed. Often considered to be the most difficult state in strategic management,

    strategy implementation requires personal discipline, commitment, and sacrifice. Successful

    strategy implementation hinges upon managers' ability to motivate employees, which is more an

    art than a science.

    The strategy implementation task is easily the most complicated and time consuming part of

    strategy management. It cuts across virtual all facets of managing and must be initiated from many

    points inside the organization. The strategy implementers agenda for action emerges from carefulassessment of what he organization must do differently and better to carry out the strategic plan

    proficiently. Each manager has to think throughout the answer to to what has to be done in my

    area to carry my piece of strategic plan, and how can I best get it done? how much internal change

    is needed to put the strategy into place depends on the degree of strategic change, how far internal

    practices and competencies deviate from what the strategy requires, and how well strategy and

    organizational culture already match. As needed changes and actions are identified, management

    must see that all the details of the implementation are attended to and apply enough pressure on the

    organization to convert objectives into results. Depending on the amount of internal change

    involved, full implementation can take several years.

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    Question3

    The goal of any business strategy is to achieve a competitive advantage within the company's

    industry. The following analyzes how the Internet can influence a company's competitive

    advantage and to what extent it should be taken into account when planning to implement

    corporate strategies.

    When considering the Internet as a possible distribution channel, it is necessary to look into the

    future and ask how this network may change our industry over the next two or three years. It is not

    sufficient to consider the possible advantages; it is also of prime importance to assess the possible

    damage our competitive advantage could suffer if other businesses of the particular industry

    entered the Internet and it became an important distribution channel for our line of activity.

    Before carrying out such an analysis, we must first define clearly what the Internet is: a mere

    information channel or a complete distribution channel? In order to set about this task, we must

    realize that the Internet is merely a physical medium that provides a base for certain services. It is

    how interesting these services prove to be that will indicate the true value of the network. The mainservices are e-mail, newsgroups, and the Web. The possibilities offered by each are very different,

    as are the rules governing them.

    E-mail allows fast, inexpensive, and asynchronous communications. (It is not necessary for the two

    people communicating to do so at the same time.) In this regard, it has merits that the telephone

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    (synchronous), the fax (expensive), and the postal service (slow) all lack. It is personal and,

    therefore, discrete (provided that nobody with sufficient means tries to intercept it). The main

    problem of using it in commercial transactions is lack of security: Security protocol is still not

    sufficiently widespread.

    Newsgroups are a form of receiving information on specific subjects that interest us and of

    disseminating information aimed at particular people who may be interested in it. Their merit lies

    in the fact that the information is unrestricted and is not screened by the major communications

    corporations. While the newsgroups provide an interesting source of information for industries,

    their use does not cover commercial purposes for ethical reasons of the network.

    Finally, there is the World Wide Web. The Web has broken through the barriers of the not-so-

    friendly Internet and has made it a user-friendly tool. It has transformed an information network

    into a real information channel that is open not only to hackers and people with a special interest in

    information, but to the public in general, that is buyers. In short, it has changed the anti-

    commercial Internet into a commercial network that will eventually become an important

    distribution channel.

    The internet helps managers to manage strategically by the following ways:

    The Web as a distribution channel

    When we speak of the current Web, it should be pointed out that this is quite different from the

    Web that will exist in two or three years' time.

    For our part, we would hope that by that time-

    Security protocols enabling (at least) electronic transactions based on existing credit cards will

    have become widespread.

    The Web will be used widely as a tool for purchasing and seeking suppliers.

    The conclusions of this article are based on these two principles. A delay in the commercial

    implementation of the Web could give rise to a general disillusionment and cooling-off of public

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    interest. It is, therefore, important to take advantage of current enthusiasm to reach the greatest

    number of users.

    As a distribution channel, the Web may be characterized as follows:

    It is a new channel that is not controlled by companies in any industry.

    Distribution costs are low.

    Its impact is limited (for the time being). Predictions are made, but its true impact is not really

    known.

    It enables fast distribution of information products.

    The cost of changing prices or even commercialized products is very low, thus enabling a

    relatively quick product rotation.

    Flexibility and swift change

    Another interesting feature of the Web is that the information it offers may be changed very

    quickly, and this change reaches clients or buyers immediately. This is particularly important for

    industries in which competition is based on major advertising campaigns to promote new products

    with a very short life cycle. We should consider that advertising is part of the life cycle, and the

    shorter the cycle the greater the advantage.

    Quick product change to adapt to the market not only ensures a specific competitive advantage, but

    also enables it to be maintained.

    The Web as a source of information that could influence competitive advantage

    Let us imagine for a moment that a consumer association compiles a database on washing

    machines, allowing prices, quality, and even complaints received by the association (as

    information on after-sales service) to be compared easily. Let us also suppose that this database is

    regularly updated, its existence is known, and access to it is easy-there are even terminals at

    washing machine sales outlets.

    Direct comparison of prices, quality, and service received from an independent organization at the

    moment of decision making can significantly affect the way potential buyers behave. The influence

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    can even be stronger than a positive experience (the previous washing machine). This is because

    customers have all the information they need, and the switching cost is therefore very low.

    Direct comparison would force washing machine suppliers to wage war on one another; not so

    much on the basis of marketing but rather centering on price, quality, and service.

    When customers possess a large amount of comparative information, suppliers are forced to make

    a greater effort. In general, the suppliers' power decreases, obliging them to lower prices and

    improve quality and service.

    This leads us to consider the fact that a large proportion of our commercial system is based on

    customers' lacking information on their options. There is a tendency to work with a series of

    suppliers that provide more or less satisfactory service. The customer will only make the effort to

    look for a new supplier if the level of satisfaction drops significantly (in other words, there is a

    switching cost).

    This kind of information-based systems would make it easier for new suppliers to enter the market.

    Since the distribution channels are "fair," a supplier with attractive prices and good service could

    enter the market very quickly.

    A possible conclusion would be that it is essential to control how information is distributed. It is

    important to give as much information as possible to potential clients, but it is also in our interest

    to ensure that this information cannot be used to give customers greater power and thus bring about

    a war in the market.

    Changing competitive balance within the industry

    It is impossible to carry out a global analysis on how the Internet can help companies to improve

    their competitive position within their industry. Each market is different and requires a specific

    analysis. Studies should often go beyond purely technical criteria.

    Let us take the case of travel agencies, for example. In theory, if in a year's time everybody that is

    connected to the Internet will be able to reserve their air and rail tickets and book their holidays

    through the Net, we might assume that the future of travel agencies could be at risk. We should go

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    further and consider who makes reservations in the company and how it is done. This task is

    normally part of the daily work of the secretaries. A secretary that needs a ticket has two options:

    to call the agency and let them to do all the work and send the tickets; or to learn to use the Internet

    reservations system, find the flights, study the connections, pay for the ticket; and organize how it

    is to be sent. Personally, I would prefer that my secretary called the agency and used the time she

    would have spent on the Internet in some other way.

    Having direct access to services is not always an added value. Only those services that really add

    value to their use have a chance of succeeding in media such as the Internet.

    A study on the competitive possibilities of the Internet in a particular industry should include all

    the factors that influence the distribution channel we wish to modify or operate in.

    The Internet must not be considered as a global distribution channel for the industry. Each product

    or set of products should be studied separately.

    Conclusion

    As illustrated above, strategic implementation has little to do with the leadership of the

    organization and more to do with management. While leaders envision and design the strategy, it is

    managements job to successfully implement the strategy. This is frequently the most difficult part

    of the process. It is often much easier to design a strategic plan than it is to encourage everyone

    within the organization to implement the strategic plan and achieve each milestone and objective

    on time and on budget.

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    REFERENCE

    Strategic Management 2nd Edition- By G.A Cole

    International Management- By ARVING V. PHATAK

    RABI S. BHAGAT

    ROGER J. KASHLAK

    Strategic Management Concepts and cases 9th Edition

    By Thompson Strickland

    Internet

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