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Essay Details:
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According to Porter, the value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage by following one of the two strategies:
• Cost advantage: by better understanding costs and constricting them out of the value-creating activities. Main focus of this strategy also known as cost leadership is to offer goods and services at lower cost than the competitors. To follow this strategy a company also consider these approaches- tight cost control, economics of scale in production and also cost minimisation.
• Differentiation: by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors...
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Common topics in this essay:
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