Strategic Value Analysis
Undertakingan industry analysis assists in understanding the market and thesetting in which the company will operate. According to Shank,Spiegel, and Escher (1998), conducting a calculated value analysis isimportant as it not only assists in shaping a particular business butalso serves a purpose of ensuring the sustainability of the industry.However, there are issues for consideration, some of which will becritically evaluated in this paper.
Itis advisable for a business to conduct an industry analysis beforeoutlining its value, objectives, and goals. Undertaking a researchand gathering information on a particular business environment helpsa company to determine the constituents to incorporate in its aimsand values. Furthermore, by adopting this approach, the company canidentify and evaluate the methods of reducing associated risks,recognize and analyze the industry’s trends and probablechallenges, determine the sources of project capitalization, andfinally identify service and product opportunities. For example,Walmart is now a globally leading retailer thanks to it its successin achieving a competitive position in the retail industry. Theconsistent pressure from the external market renders the company toevaluate the value chain before developing strategic goals andobjectives. Walmart adopts the five porter’s model approach toundertaking the industry`s analysis (Greenspan, 2017).
Adoptingsome value propositions can be the reason for increased customers andan improved position in the industry. James (2013) advocates forlowering of prices, formulation of unique and better products,initiation of flexible and friendly operations and a direct customerinteraction. With these values, the client processes are hassle free,lowered costs and a client can pay more so as to save time and energyas things are done promptly. Furthermore, the customers perceive thebusiness as an “enterprise” instead of a vendor, and therefore,retain their loyalty to the organization. Volvo Car Company is anexcellent example that has adopted these values and has been able tothrive in the automotive industry.
Insummary, a company should maintain a good social status instead ofconcentrating on profits since a lasting goodwill will determine thesuccess of the company in the future. Despite the huge consumermarket in America, contemporary western organizations are focusing onoffering minimum wages to ensure the profits obtained are sharedequally.
Greenspan,R. (2017, January 8).Walmart: Five Forces Analysis (Porter’sModel). PanmoreInstitute.Retrieved fromhttp://panmore.com/walmart-five-forces-analysis-porters-model-case-study
James,G. (2013, August 2).4 Types of Basic Value Propositions. Inc. Retrieved from https://www.inc.com/geoffrey-james/the-4-types-of-value-proposition.html
Shank,J. K., Spiegel, E. A., & Escher, A. (1998, January 1). Strategyand Business.Strategic value analysis for competitive advantage: an illustrationfrom the petroleum industry.Retrieved fromhttps://www.strategy-business.com/article/9797?gko=83012.
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