Chapter 4 Assignment Essay
1) Four test that should be used to measure the competitive power of a company’s resource strengths are:
• Is the resource really competitively valuable? All companies possess a collection of resources and competencies; some have the potential to contribute to a competitive advantage, while others may not. • Is the resource strength rate, is it something rivals lack? Companies have to guard against prideful believe that their core competencies are distinctive competencies or that their brand name is more powerful than the brand names of rivals. • Is the resource strength hard to copy? The more difficult and the more expensive it is to imitate a company’s’ resource strength, the greater its potential …show more content…
Assembly (Medium Value Added)- Due to the combination of rising raw materials' costs and consumers' eternal search for the lowest price, companies are looking for ways to cut costs out of the manufacturing process. Recent trends to reduce costs include using fewer parts in each vehicle component, minimizing industrial waste and pollution, and having parts delivered to assembly plants on a just-in-time basis.
Marketing (High Value Added) - Marketing is an integral part of the value chain, since it is the primary basis for consumers' perceived values. Automakers and individual dealers work together to create national, regional, and local marketing strategies. These may include television and radio advertising or special incentives offered to customers. In addition, firms have started advertising more online. GM, for example, spent 67% more on online advertising in 2005 than it did in the previous year.
Distribution and Sales (High Value Added) - After production is complete, automobiles are shipped to dealerships