Conclusion
This chapter explained the connection between the value chain, its ability to help deliver on the four dimensions of competitiveness, and the resultant impact on profitability. A firm can lower costs to help marketing use price as a competitive weapon to expand market share. It may also charge premium prices in the market if the value chain delivers a value proposition (e.g., speed to market) for which a customer is willing to pay. All of this will have a positive impact on the firmâs financial performance as measured by EVA or ROIC.
*A portion of this chapter is based on Presutti, W. D., & Mawhinney, J. R. (2007). The supply chain-finance link. Supply Chain Management Review, September 2007. Used with permission.
Get Understanding the Dynamics of the Value Chain now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
