Introduction

Question 1

How to create more value along the value chain than competitors?

Answer 1

Configure the value chain differently

Perform activities in the value chain more effectively

To do the latter: Build up
 Specific resources and
 Capabilities
that other firms lack

It should not be easily possible for other firms to duplicate or acquire these
resources or capabilities

Question 2

“The Value Chain” Besanko et al. (2010)

Answer 2

https://en.wikipedia.org/wiki/Strategic_management#/media/File:Porter_Value_Chain.png

Question 3

Resources (things that a firm “has”)

Answer 3

 Firm-specific assets such as patents or trademarks
 Brand name reputation
 Installed base (e.g. network externalities)
 Organizational culture
 Workers with specific human capital

Question 4

Capabilities/Core competencies (things that a firm “can do”)

Answer 4

 Activities that a firm does especially well compared with other firms
 Might reside within special functions or are linked to particular technologies
 Typically valuable across multiple products or markets
 Often tacit - i.e. difficult to pin down exactly or reduce to procedure guides
(also linked to particular work norms, organizational culture)

Question 5

Summary

Answer 5

 Value creation is widely accepted as a company goal
 While the maximization of shareholder value is a very common goal, also
the value created for other stakeholders may be taken into account
 It is often claimed that corporations have to take over social responsibility
 A corporate culture might affect the way the value chain operates and,
thus, may influence its effectiveness by being a unique resource or a
company’s capability