Using Porter’s Value Chain Framework, Explain How Technology Can Help an Organisation to Gain a Competitive Advantage

Topics: Customer relationship management, Customer service, Marketing Pages: 5 (1961 words) Published: May 16, 2013
In order to analyse the various types of activities which would help in the creation of competitive advantage he use of Porter’s Value Chain Analysis are done. The value chain analysis will help in order to perform two main activities such as primary & support activities. The primary activities in the value chain analysis takes into consideration inbound and outbound logistics, marketing and sales & after sales service. Whereas the support activities takes into consideration, procurement of raw materials, use of up to date technology, infrastructure of the firm & managing the resources. Both the activities in the value chain analysis are interlinked to one another. It shall be taken into consideration that, technology has been referred to as one of the most important aspect within the value chain analysis. With the procurement of technology in the organization has provided competitive edge to the enterprise (Use of technology, 2012). Technology shall take into consideration, research & development as well as various other technologies which would help to support the value chain activities. Hence, it can be concluded that various business houses make use of technology so as to provide an effective as well as efficient customer service. Technology by many organizations has been referred to as a backbone of the organization operating in the modern business environment. Each & every organization is using technology in some or the other form so as to increase the efficiency of the enterprise. In today’s global as well as ever changing business environment, investing in technology would be referred to as one of the most important aspect to provide competitive advantage to either small scale or medium sized companies. Companies who have not yet adopted the technologies are facing many hurdles to remain competitive amongst their industry (Use of technology, 2012). Technology is a powerful tool which will help to offer wealth if used strategically. When technology is implemented in a strategic will act as a most powerful tool for the organizations to attain competitive advantage. At one point of time, technology was regarded as a novelty to the workplace, but now in the competitive business environment technology has increased at a higher pace and has become necessity for life. Technology integration has been referred to as one of the key elements to be competitive in the modern business environment (Use of technology, 2012). Organizations who want to sustain within the highly competitive environment tend to take up various form of technologies so as to gain advantage & be up to date in the ever changing environment. It can be said that, by using the Porter’s value chain analysis technology has been regarded as one of the key components for any organization to act competitive. By focusing upon the Porter’s value chain analysis, there are three strategies which can be used to act strategically & be a step ahead of its competitors. They are differentiation, cost leadership & focus by using various types of technology. The use of technology has helped many organizations to attain competitive advantage as compared to its competitors. The use of technology has helped many big retail chains such as Wal mart & Carrefour to reduce the cost of the products and assist in differentiation and focus strategies. For example, Wal-mart has been using an overall cost leadership strategies which has helped it to become one of the largest retail chains all across the globe. The use of technology in form of electronic commerce (e-commerce) has helped to reduce the cost of distribution drastically. One of the examples which can be discussed in this regards is that, for a subscription fee of approximately $30 a persona can download the software and get the updates for the duration of one year (Porter, 1996). Without the help of technology this cannot be made possible whereas the internet vendors will not be in a position to provide particular software...
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