A short essay of marketing ASAP PLEASE Question Two from Ch

Question Two: (from Chapter Two) Describe the differences between a value chain and a value delivery network.

Solution

Value chain involves activities starting from bringing material, creating a good or service and providing service after sales. Each stage can create more value for the customer after analyzing the cost and performance associated with each activity and tries to improve the process in order to benefit the customer. But value delivery network act as the connector between resources and end customer and it includes all the experiences the customer will have on the way of obtaining and using the product or service. Value delivery network is made up of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system. But value chain consists of the series of departments that are involved in creating value for the customer and the primary activities in the value chain include logistics, operations, outbound logistics, marketing and sales and service. The support activities in the value chain include procurement, technology development, human resource management and firm infrastructure.

Each link in the value chain adds value to the product. The overall success of the company depends upon the value created by each department and it cannot achieve success only with the success of marketing department. The value delivery system makes the customer aware of the distinct capabilities of the system which helps to deliver higher satisfaction and incremental product value. There are many stakeholders in the value delivery network and all the stakeholders need to be satisfied in order to satisfy the end customer. Hence any attempt to increase the customer satisfaction should not hurt other stakeholders in the network and the business should be able to bring balance between goals of different stakeholders in the business. For business success the company needs to understand the customer value, create higher customer value compare to the competitors, capture evolving customer value and sustain the customer value by incorporating the customer value to its product in the value delivery network.