The value chain is very important for competition as it helps to divide the company’s activities into the technologically and economic activities. Such activities are called “value activities” because the value that is produced by a company can be effectively measured by the price that buyers will gladly pay for a product or service. For several years companies have been effectively using innovative technologies for better performance and for gaining competitive advantages Even with the passage the challenges to companies to gain competitive advantage has remained the same because companies want to market its products and services to the largest customer base prevalent in the market.
The overall success of a company depends upon its success in value creation for its customers. A company can gain a competitive advantage by improving its operational capabilities that will reduce costs. Enhancing business individuality and uniqueness is also quite important to improve competitive advantage which can be implemented as the company’s best practices. Companies gain and retain a sustainable way of beating the competition. In their efforts to become competitive most companies have used the same methods and technologies because of which they end up making the same sort of decisions and therefore do not acquire the required competitive advantage.
To gain a distinct competitive advantage, companies must not become part of a crowd but stand out in its uniqueness and individuality. Concentrating on the usual or traditional ways of gaining competitive advantages no longer works as effectively as before because everyone is using the same method and technologies. Increasingly more and more companies are using descriptive analytics to ascertain their current performance with the objective to use predictive and prescriptive analytics to beat their competition. The increasing availability and use of external data sources additionally consolidate the progression.
Organized investigations and logic provides examples and methods to discover proactive outcomes but still have a planned and ordered decision making progress. This provides the chance to increase efficiency and also be distinctly different to gain a competitive advantage. The value chain recommended by Michael Porter is a great tool for companies to identify areas which can provide the most advantageous analytics and operational capabilities. The technological and economics division helps in specific activities the primary being the conversion of raw material into products and services to make them saleable. Other activities that include infrastructure and resource management both human and material enable the production and sale of products and services in an efficient manner.