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Value Chain

Par   •  10 Novembre 2018  •  2 239 Mots (9 Pages)  •  72 Vues

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used their value chain to compete and gain market share. The evolution of technology and processes in companies has shown that the value chain is now more consumer oriented, he becomes the central element of the business strategy. Indeed, it is no longer just a matter of proposing an offer, it is here to adapt to the needs and desires of consumers in order to be able to make an offer.

Today, technological advances, cheaper transportation costs and trade liberalization have transformed the way companies produce goods and market them around the world. In fact, every activity included in the value-chain has been affected by technologic and communications changes. New technologies have pushed the traditional value chain into a real-time value chain. Many stakes for companies present themselves today because, in fact, the customer is looking for unlimited and continuous access to the offer. Value chain management has shifted from automation and integration to optimization of the entire value chain in real time. Instant processing and coordination of business activities characterize this real-time value chain. It should enable organizations to adapt more quickly and ensure their sustainability in a changing, complex and rapid global environment. Today, the virtual world is a real business that has affected all the important functions that make up the value chain.

Globalization and changing industry dynamics have forced retailers to implement new technological processes and to uptade their business strategies to improve brand value for customers. In addition, any types of companies evolve at low price through the use of technology (such as Internet), which is today an indispensable competitive tool. Now the logistics system of an enterprise is considered efficient according to the speed at which it can adapt to deal with changes in the environment and new types of needs.

Indeed, the market has witnessed a rapid increase in competition in many areas. Today, it is a question of improving the turnover, of extending the market shares and of making every effort to maintain a loyal clientele. The field of technology now concerns all types of companies and influences their success in the market in terms of follow-up, customer service, procurement and performance improvement. Concerning logistics improvement, “Colla and Dupuis (2002) point out that one of Wal Mart’s great strengths is its sophistication in real-time data gathering from its network, which has helped it to develop sophisticated data warehouse tools and computerized data exchanges with suppliers, thus providing impressively accelerated stock turnover” (New logistics technologies in improving customer value in retailing service, In Journal of Retailing and Consumer Services, Sanda Renko, Dejan Ficko, 2010). Developing, manufacturing and selling a product is today a challenge for every company. As a company’s business drivers change, all elements of its supply chain must evolve and change according to current trends and to create value. A supply chain that does not follow trends is doomed to fail and is considered as ineffective.

In terms of marketing, new technologies such as the Internet and geolocation allow today to better know the customer and to personalize as best as possible the offer that is proposed to him. Through this technology, market research can be carried out in real time through surveys on social networks and groups with interactive purpose with the client. For example, Facebook, one of the most widely used social networks in the world, allows an enterprise to extend its reputation among consumers and also assess its visibility rate and the activity of its page thanks to the tools realizing statistics in real-time. In fact, these new marketing tools become essential to the success of a company for which the opinion and the link it maintains with the consumer becomes the source of any creation of value.

At the service level, technology has marked its impact by the appearance of a ne form of delivery: instant delivery of data, information and services. Indeed, nowadays, long queues to see a counter at the bank no longer exist; ATM and online banking accessible via smartphones, computers or tablets have replaced them. The physical step of the purchase process is no longer an inevitable step, online shopping make it optional until the physical delivery.

With all those improvements in technology and communication, companies must give priority to collaboration and coordination with all partners of the value chain, ranging from procurement to delivery of the product. They have to share information with their suppliers and their customers. Then, investing in technology is allowing the firm to meet customer needs that other competitors may not know. Moreover, organizations can now adopt an efficient demand forecasting thanks to the link they have with their suppliers and customers via technology. Also, the value chain’s functions are not independent but complimentary. It is where the leadership takes plays it role, managers have to support all the activities of the value chain and to define the goal, vision and mission of the enterprise in order to deliver the expected product.

Then currently, the matter is the creation of a relationship between the enterprise and its customers and suppliers. A business vertically related in today’s environment tends to be more efficient than a business horizontally related.

Finally, to become competitive and obtain competitive advantages, a company must distinguish itself from the competition by the costs, that is to say, being able to produce cheaper than the competition, or by differentiation, bringing to customers a value other than the cost through a detailed knowledge of their expectations. Thanks to the concept of value chain and its different elements the company can establish a clear strategic and coherent plan that fits the company’s goals, vision and mission. But that is not all, due to the development of technology and means of communication, the value chain is no more an automatic and established strategy. Companies have to adapt their value creation to the world by following trends and innovating. In fact, the world is in continuous change and an enterprise that does not evolve with it cannot be sustainable. Consumers are placed in the middle of any kind of business and firms must respond to their needs and wishes. The value chain is now a real-time value chain that often changes in order to serve instantly and efficiently the demand.


Reference List:

Bob DW. And Ron M., 2010, Strategy process, content, context: an international perspective, United Kingdom

Baltazar, A. 2013,


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