Value Chain

Topics: Marketing, Brand management, Strategic management Pages: 3 (811 words) Published: March 14, 2013
The brand value chain
The majority of companies that still follow the main principles of the industrial economy will face great difficulties in the value economy of the future. When the company defines itself by its products, far too many resources will be tied up in the product system. Alarm bells should ring when investment in products, services, divisions and departments are inflated when compared to a company’s actual market access. Fortunes are spent on developing new products without taking a critical view on their relevance in the market. At the same time companies will find it increasingly difficult to push their new products through the value chain to the people who are expected to buy them. It is becoming still more difficult to penetrate the communication flow – and the more products that are fighting for the same resources, the less these resources will suffice. Brand Value Chain is a model that illustrates the fact that the company must change its focus to win the optimal value position. In contrast to the traditionally thinking company that optimises itself according to its products, the mantra in Brand Value Chain is the concept that in the future, the company must optimise itself according to its value position. Internally, the employees must be made to understand the value position and its importance for the company’s existence. The value position must be made relevant and present so that the employees understand how they, through their daily work, can contribute to the company achieving the desired value position. Externally, the company must send a clear signal through its collective behaviour about which value it offers to the market. This can be effectuated through the product programme, its customer relations and through all its marketing and communication. To win a strong market position the company must pull in the same direction in everything that it does. The company’s strategy and actions must be optimised according to how the...
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