Strategy in Value Chain Analysis - Essay Example

This idea was built upon the insight that an organization is more than a random compilation of machinery, equipment, people, and money. Only if these things are arranged into systems and systematic activates it will become possible to produce something for which customers are willing to pay a price. Porter argues that the ability to perform particular activities and to manage the linkages between these activities is a source of competitive advantage.

The above diagram shows an example of a corporate value chain analysis that can be applied to the general manufacturing process of a Cadbury’s product. The analysis can help identify the company’s core competencies and weaknesses throughout the manufacturing process and whether a competitive advantage is created or lost because of this.

Chen et al (2009) state that corporate strategy is primarily about the choice of direction for a firm as a whole and the management of its business or product profile.

Cadbury’s corporate directional strategy after their success in 2008 is growth. This is one of Cadbury’s main priorities for the future.

Working alongside the company’s business strategy, Cadbury will work towards achieving horizontal growth. This is achieved by Cadbury expanding its products into other geographical locations and/or increasing the range of products and services it offers (Chen, et al., 2009).

Cadbury hopes to achieve horizontal growth by focusing on five key brands, Cadbury, Trident, Halls, Green and Black’s and The Natural Confectionery Company Cadbury are doing this as an action towards achieving their vision as it is believed that these brands have the strongest potential in new and existing markets on a global level.

A key factor towards Cadbury mentioned throughout the report, is the lack of sales and revenue generated by Cadbury outside of western Europe. Therefore concentrating on specific brands that are thought to be the most successful on a global scale will help the company launch new products in other countries, hopefully successfully.