There are many competitive advantages to be won in the design of a value chain. After watching this video, you will be able to assess the architecture of your company's value chain.
- Compare Ikea with a traditional furniture retailer. … Let's say you want to buy a dining table and four chairs. … Chances are that the price of the dining set … at Ikea will be a fraction … of what you would pay at most other furniture retailers. … How does Ikea manage to do this? … The difference starts with Ikea's approach … to furniture design. … Ikea's furniture typically consists of only, … or mostly, flat pieces designed in such a way … that all of the components of a chair, a table, a bed, … desk, can be packed compactly in a flat cardboard box, … and with included instructions, … assembled my the customer to create the finished product. … Self-assembly by the customer means that Ikea is able … to completely eliminate the labor costs associated … with assembling the furniture in the factory. … Flat packing of the components also means that for Ikea, … the costs of shipping the flat boxes … across continents are minimal. … As a result, Ikea can further ensure … that irrespective of where the customers are based, …
Skill Level Intermediate
Q: This course was updated on 08/19/2015. What changed?
A: Due to member demand, we've added three movies to take you even further into competitive strategy: Competing through disruption, Managing complementors, and Understanding industry dynamics