Collier And Evans Value Chain

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VALUE CHAIN:

When customers purchase a good or service they only see the final product and not the series of processes that lead up to it. In fact, the processes involved plays a key role in creating the value in the product from its infant stage (ideas) to its final stage (product) until disposal by consumers, this process is known as the “Value Chain” (Kaplinsky & Morris, 2001).

The value chain acts like a blueprint which enables organisations to view links between the activities, enabling them to make effective decisions and plan strategies to provide better value and achieve competitive advantage over its competitors. (Collier & Evans, Value Chains, 2013)

For this value chain its key features are the suppliers, inputs, value creation
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We live in an age that is highly competitive, so competitive that the only distinct difference customers know between competitors is their company name, but everything else about the product is either similar or the same. For example, in the Auckland market there would be many other companies selling similar bikes. So with innovation, Peddle and Power can distinguish itself apart from its competitors with the E-bikes, which is an idea that is different from the normal bikes (Collier & Evans, Value Chains) . This is their competitive advantage.

PRODUCT DESIGN

Quality Function Deployment (QFD) is a customer oriented approach to product innovation that guides managers and design teams in the creation process of a new product (Govers, 1996).

Step 1: Voice of the Customer (VOC):

In order to provide maximum value to consumers, a company must take into account the needs and wants of their customers and design their products using the feedback they receive as a guideline (Collier & Evans, Value Chains, 2013). For “Peddle and Power”, there exists a demand for a variety of E-Bikes, models which range from small wheel to large wheel styles, that can assist the leg power of cyclist through support of electric motor power which can be (upon user discretion) useful in hilly areas of Auckland, a more efficient battery and an improved overall performance of the
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Therefore, the design team must use the information obtained through feedback to improve and ensure the technical aspects of the product meets customer requirements. For example, lithium batteries (length of life), lighter bikes, higher speeds, ability to climb hills, robustness of parts, aesthetic appearance, number of gears and the ease of changing gears.

CONCLUSION:

Good value “Peddle and Power: E-Bikes”, begins with raw materials from the companies three suppliers, USA, China and Malaysia. These materials are used as inputs and then processed to combine different values, which is transformed into the final output (E-Bikes). From here the products are then aimed at the Auckland market segment and connected through customer support. The strategies used to gain competitive advantage are quality and innovation. Using customer feedback the company is able to identify specific requirements to specifically satisfy their needs and wants.

References

Collier, D. A., & Evans, J. R. (2013). Value Chains. In Operations Managment. Ohio: Joe

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