The gurus of value chain analytics believe that the capabilities that a firm has, have a significant impact on value chain and the processes of a company. In addition, the renowned companies, the big brands and the huge names have had clear capabilities that had a positive…
This, however, does not imply that the other products do not sell in the market. In a market, there are several products, each with a differentiation, each with a cutting edge – each having a separate USP associated, and the admirers of the particular benefit are retained by that product/service or brand. For example, in many regions, COKE is stronger in taste compared to PEPSI, and therefore, individuals having taste for stronger beverages prefer COKE, while others go for PEPSI. The critical point in this discussion is that both products sell, and sell well. This way, the capability of a firm to develop a USP has turned on its sale volumes. Subsequently, moving backwards in the value chain, when a supplier sees the manufacturer doing well, the supply chain strengthens itself in terms of its operations and processes. Other than the operations in the value chain, the operations within the manufacturing unit have also illustrated positive impact. Some authors associate this feel like a current flowing in a wire; it becomes similar to the capabilities flowing backwards to where it is supplied from. The ideas, values are engraved in the roots of the organization and from there, it circulates to all parts of an organization and the business itself indulges in boosting its unique edge for its customer values. Following is the discussion of the IKEA case that depicts a classical example of the same.
Fundamentally, IKEA is all about furniture of various sorts and types and kinds. The idea behind IKEA is to offer a wider variety of designed and functional, home furniture products, at a low price to increase their target audience; because expensive furniture curtails the target audience, and with affordability of a brand, comes better life style for not-so-rich individuals and families. This fundamental idea provides the foundation for the products that go through the phases of ...
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