value-chain
(noun)
The value chain categorizes the generic value-adding activities of an organization.
Examples of value-chain in the following topics:
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Are Global Corporations Beneficial?
- International expansion can drive significant shareholder value, but the net impact of globalization is hotly contested.
- International operations are therefore a direct result of either achieving higher levels of revenue or a lower cost structure within the operations or value-chain.
- Organizational Structure: Another significant hurdle is the ability to efficiently and effectively incorporate new regions within the value chain and corporate structure.
- Finding a way to capture value despite this fixed organizational investment is an important initiative for global corporations.
- Other commonly raised concerns include damage to the environment, decreased food safety, unethical labor practices in sweatshops, increased consumerism, and the weakening of traditional cultural values.
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Service Marketing Management and Metrics
- Tasks for marketing management may include conducting a competitor and value chain analysis, putting together a brand audit, and assembling qualitative and quantitative research.
- Marketers use these metrics and performance measurement as way to prove value and demonstrate the contribution of marketing to the organization.
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Organizational Online Buying
- Online organizational or business buying, B2B, links supply chain systems more efficiently to ultimately satisfy the needs of end users .
- Functions such as electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners are everyday ocurrances and must be streamlined and efficient.
- Each company, within the B2B arena, must market to its colleagues in order to generate sales and to share in a portion of the supply chain revenue stream.
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Measuring the Market
- Dre's headphone line, "Beats" was made the companies involved in its supply chain estimated the risk.
- Before a commitment to a product or supply chain is made, businesses must test and measure its viability.
- Customer value is defined by the following formula; Value = Benefits - Price.
- The amount and detail of customer data is now mined for its value to supply chain decisions and the bottom line.
- Measurement is key to production decisions at all levels of the supply chain
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Competition Based on Value
- Value-based marketing allows organizations to create and sustain differentiating values that enable them to compete within their markets.
- Value is thus subjective (i.e., a function of consumers' estimation) and relational (i.e., both benefits and cost must be positive values).
- TCVM also creates value for employees, business partners (customers, delivery chain, supply chain, unions) and shareholders.
- This image shows how value creation is tied to cost and revenue.
- State what is important when shifting to a competition based on value marketing perspective
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Value of Retailing
- For example the $16.5 billion merger between Federated Department Stores and Mays forming Macy's Department Stores and the 2004 merger between Kmart Holding Corp and Sears that was valued at $10.9 billion.
- Retailers are part of an integrated system called the supply chain.
- Retailing second hand or used goods, it enables consumers to purchase goods at deeply discounted prices or to borrow against and using the value of the product as collateral against a cash loan.
- Even the second hand retail market has found its way to the Internet via popular auction and sale sites that commission all sales as their part of the retail supply chain.
- The supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from suppliers to consumers.
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Influence on the Entire Supply Chain
- Marketing can play a key role in integrating supply chain processes and promoting collaboration between different stakeholders.
- Supply chains are crucial functions that allow organizations to translate customer demand into product fulfillment and market delivery.
- Marketing flows and processes encourage information sharing throughout the entire supply chain.
- Marketing flows are often integrated into the larger supply chain of an organization to promote efficiency.
- Show the impact that marketing has on supply chains, both operational and marketing types
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Everyday Low Pricing
- It was noted in 1994 that the Wal-Mart retail chain in America, which follows an EDLP strategy, would buy "feature advertisements" in newspapers on a monthly basis, while its competitors would advertise 52 weeks per year.
- One 1994 study of an 86-store supermarket grocery chain in the United States concluded that a 10% EDLP price decrease in a category increased sales volume by 3%, while a 10% Hi-Low price increase led to a 3% sales decrease; but that because consumer demand at the supermarket did not respond much to changes in everyday price, an EDLP policy reduced profits by 18%, while Hi-Lo pricing increased profits by 15%.
- The company has worked hard to manage this economic image of value for its products that competitors, even giant retail stores, are unable to meet.
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Intangibility
- Intangibility is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence.
- For example, in the case of two fast food chains serving a similar product (Pizza Hut and Domino's), it is the service quality, not the actual product, that distinguishes the two brands from each other.
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Settling the List Price
- 'certified organic' and 'product of Australia') may add value for consumers[1] and attract premium pricing.
- In certain supply chains, where a manufacturer sells to a wholesale distributor, and the distributor in turn sells to a retailer, the use of a suggested retail price is used to denote the price to use when selling to the consumer.
- Value to the customer should be taken into consideration in addition to pricing objectives, profit maximization, geographic and buying habit considerations, discounting, rate of return, competitive indexing, the image conveyed by the price, customer price sensitivity, any legal restrictions, the category price points, price ceilings and floors and how payment is to be made.
- The actual price tag can offer a wealth of information and opportunities to control inventory and provide supply chain data.