Using Porter's Value Chain analysis competitive advantage can arise from
A) providing buyer value similar to competitors.
B) performing value chain activities in the same ways that create identical buyer value like competitors.
C) differentiation-based advantage.
D) providing buyer value comparable to competitors but performing value chain activities more efficiently, or performing value chain activities in unique ways that create greater buyer value than competitors and hence command a premium price.

Question

Quizplus · Accepted Answer

Porter's Value Chain analysis suggests that competitive advantage can arise from performing value chain activities in unique ways that create greater buyer value than competitors, or providing buyer value comparable to competitors but performing value chain activities more efficiently. This is referred to as differentiation-based advantage. Therefore, option D is the best choice. Options A and B suggest providing buyer value similar to competitors and performing activities in the same ways as competitors, which does not lead to competitive advantage. Competitive advantage can arise from either providing buyer value comparable to competitors but performing value chain activities more efficiently, or performing value chain activities in unique ways that create greater buyer value than competitors and hence command a premium price.

Using Porter's Value Chain Analysis Competitive Advantage Can Arise from