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Introduction

The value chain, or known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter.

(Porter) Most of business strategy is to achieve a sustainable competitive advantage. Cost advantage and differentiation advantage are the two basic types of competitive advantage. Cost advantage can be obtained when the firm is able to deliver the same benefits as competitors, but at a lower cost, while differentiation advantage is obtained through deliver benefits that exceed those of competing products. Both of these are called positional advantages. A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. The following diagram combines the resource-based and positioning views to illustrate the concept of competitive advantage:

According to the resource-based view, in order to develop a competitive......

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Approximate Word Count: 1178
Approximate Pages: 5 (250 words per double-spaced page)

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