stra.mgt c.w - edith
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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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