Unit 3: Discussion 1 Peer Response

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Response Comments - After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must be posted in the discussion for a passing grade.  The comments must be early enough before the end of the week to allow for replies.

Lori Hildebrandt (Student 1)

· After reading the course materials, including Mukerjee  (2016) (a good overview of the factors for competitive advantage!), apply the most relevant two elements of a value chain analysis to an organization of your choice. Justify your choice of elements as to why they are important for that organization.

When an organization performs a sequence of activities for added value in gaining a competitive advantage, it is called a Value Chain Analysis (VCA).  The components of a value chain are:

· Inbound logistics

· Operations

· Outbound logistics

· Marketing and sales

· Service

Inbound logistics:  HyVee is an employee-owned grocery store, and the consumer population may not be privy to all aspects of the store’s strategies to gain a competitive edge.  However, there is one area that is very visible to consumers regarding inbound logistics.  During regular business hours, HyVee employees can be seen bringing boxes to the floor to unload, stocking shelves, and taking inventory.  As frustrating as this can be while shoppers are trying to maneuver carts around the boxes, it sends a strategic message to customers those employees are right alongside them working while their shopping. Also, doing this during regular business hours creates a cost savings in terms of employee wages alone. 

Service:  HyVee prides itself on customer service.  At any time during business hours, you can find an employee if you need assistance.  HyVee staff are friendly, knowledgeable, and there to help with a smile.  Their slogan “A Helpful Smile in Every Aisle” expresses the core foundation of the company’s philosophy.   Additionally, HyVee will refund customers or replace an item a customer is not happy with instituting a no-questions-asked process.  The grocery store offers several amenities for customers such as a pharmacy, Starbucks, UPS and USPS shipping, dry cleaning, western union and money orders, utility payments, fax services, Redbox rentals, Rug Doctor rentals, and many more.   

· Describe one or two strategic tactics the organization might try (or already uses) based on the value chain analysis and justify why the tactic is useful as a competitive advantage tool. 

HyVee provides health services to customers for diet, nutrition, and wellness.  The store employs dieticians and chefs for customers to consult with and offers cooking classes for children and adults.  The store also packages meals as a convenience for shoppers.  This is tactical tool for a competitive advantage in retaining customers as it is excellent customer service and creates a relationship with customers. Additionally, HyVee offers a Fuel Savers Program for customers.  This is another service in the value chain that adds a competitive advantage for HyVee.  By attaching specified cents off for certain products in the store, consumers can earn discounts on fuel.  This is especially advantageous to customers with the rising prices of gasoline.

References

Dyer, Godfrey, Jensen & Bryce: Chapter 3: Internal Analysis: Strengths, Weaknesses, and Competitive Advantage Dyer, Godfrey, Jensen & Bryce: Skim chapters 4 & 5 for key concepts (Cost Advantage & Differentiation Advantage)

Mukerjee, K. (2016, March). Factors that contribute towards competitive advantage: A conceptual analysis. IUP Journal of Business Strategy, 13 (1), 26-39.

https://hy-vee.com/corporate/our-company/

Felix Doh (Student 2)

With new businesses entering the smartphone industry with more disruptive technology to attract customers, it is now imperative that existing companies such as Samsung should implement strategies that will enable them to gain and sustain their competitive advantage.

One such strategy adopted by Samsung Electronics to sustain its competitive advantage is the value chain analysis.

A value chain is a powerful tool for disaggregating a company into strategically relevant activities to focus on the sources of competitive advantage. These specific actions result in higher prices or lower costs. (Abhijeet, 2022).

 

Samsung Electronics Primary Value Chain Activities.

Samsung Inbound Logistics:

Samsung has 579 suppliers globally, and the company’s supply chain includes over 2,700 suppliers in various industries worldwide. Most of Samsung’s suppliers are based in Asia; accordingly, about 80% of the company’s supply-chain expenses occur in Asia, with Americas and Europe having about 15% and 5% respectively of Samsung suppliers. (Dudovskiy, 2017).

As a multinational company, it is essential to manage logistics strategically since logistics forms the backbone of its supply chain.

In addition to effectively managing its inbound logistics,  Samsung owns several logistics firms as its subsidiaries. Most notably, Samsung Electronics Logitec, established in 1998, is an integrated enterprise logistics management agent that serves the logistics needs of the company with 540 employees and 8,600 partner employees around the globe. (Dudovskiy, 2017).

Marketing and Sales:

Marketing is a vital demand driver in the smartphone and consumer electronics industries. These industries experience intense competition. Samsung is competing against some leading smartphone brands like Apple and Huawei. As a result, a focus on marketing is crucial to maintain demand and sales worldwide. (Abhijeet, 2022).

Samsung considers Marketing and Sales as its primary activities aim to channel the target customer segment's attention to the brand's perceived competitive advantage associated with high quality and advanced functions and capabilities of products.

As a result of the importance Samsung place on its Marketing and Sales activities, the company is reported to have steadily increased its budgets for Marketing and sales over the years.

 

References

Abhijeet, Pratap. (April 5, 2022). Value Chain Analysis of Samsung. https://notesmatic.com/value-chain-analysis-of-samsung/

Dudovskiy, John. (October 11, 2017). Samsung Value Chain Analysis. https://research-methodology.net/samsung-value-chain-analysis-5/