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In order to maintain its competitive advantage over time, an organization needs to make a number...

Question:

In order to maintain its competitive advantage over time, an organization needs to make a number of strategic decisions. This competitive strategy influences and modifies many activities, including those related to its network of value-creating activities, also known as its value chain.

Suppose that Nebulon Inc., a manufacturer of lighting fixtures, has decided to change its competitive strategy from high-quality differentiation to cost leadership. In an essay, describe how this decision would affect Nebulon's value chain activities. What would Nebulon do differently after adopting a cost leadership strategy?

Value Chain:

A company's value chain is the steps taken from raw material to inventory to a finished product. Each step along the way is a part of the value chain and should be evaluated by company management to determine its impact and effectiveness.

Answer and Explanation:

If Nebulon Inc. decides to change its competitive strategy from high-quality differentiation to cost leadership, there will be several ways that the...

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What Is a Value Chain? - Definition, Analysis & Example

from Principles of Marketing: Help and Review

Chapter 2 / Lesson 9
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