answersLogoWhite

0

A company that develops a product or service that engenders a value chain by providing a platform for other companies is considered more likely to increase its market share than a company that tries to provide the entire value chain on its own.

a value chain is "a string of companies working together to satisfy market demands." The value chain typically consists of one or a few primary value (product or service) suppliers and many other suppliers that add on to the value that is ultimately presented to the buying public.

Microsoft and its Windows operating systems, the nucleus of the personal computer desktop for which much business software is developed, is often cited as a prime example of a company and product that drives a value chain. The businesses who buy personal computer software may spend far more on the add-on software than on the essential operating system that is the de facto standard for running the software. To the extent that companies standardize on Windows, Microsoft is said to control a value chain. This particular value chain was reported in a McKinsey study to be worth $383 billion in 1998. Although Microsoft's share of the value chain was reported to be only 4% of the total, that was still $15.3 billion.

User Avatar

Wiki User

13y ago

What else can I help you with?

Continue Learning about General History

How did progressive reformers expand democracy in the states?

define joint stock company discribe main feature of joint stock company


What is the industrial value chain?

The industrial value chain refers to the full range of activities and processes that companies engage in to bring a product from conception to market and beyond. This includes stages such as raw material sourcing, manufacturing, distribution, marketing, and after-sales service. Each link in the chain adds value to the product, influencing its final cost and quality. Understanding the value chain helps companies identify areas for improvement and optimize their operations for efficiency and competitiveness.


Define opportunity costs?

The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company's decision-making processes, but is not treated as an actual cost in any financial statement.


How do Soldier comply with the national preservation act?

Reporting the discovery of artifacts and sites to the chain of command. If soldiers find artifacts or anything of historic value, they must report it to their chain of command. The chain of command must be followed to preserve the historic nature of the artifacts.


What is shared values?

Shared values are implicit fundamental ideas, principles, and beliefs that belong to a business or an organization. . The shared values guide the decisions that the members and employees of the organization make.

Related Questions

Define chain store organization?

chain stores


What is the New York Times company value chain?

The New York Times Company's value chain includes sourcing news content, creating engaging and informative articles, publishing across various platforms, generating revenue through subscriptions and advertising, and maintaining relationships with readers and advertisers. This value chain enables the company to produce quality journalism and deliver it to a wide audience.


How does the corporate valuation model define total value of a company?

Here is an <a href="http://www.excelfreesheets.com/downloads-free-excel-management-files/scorecard-capital-valuation-excel/valuation-models.html">excel valuation template</a> that may be usefull to choose the valuation model before you define the total value of a company. .


What is difference between simple and long chain polymer?

simple polymer are define as themosofning plastic where as long chain polymer define as thermosetting plastic


How does competitive strategy relate to value chain structure?

Competitive strategy is fundamentally linked to value chain structure as it determines how a company positions itself in the market to gain a competitive advantage. The value chain outlines the various activities that a business undertakes to deliver value to customers, and a well-aligned competitive strategy leverages these activities to optimize efficiency, reduce costs, or enhance differentiation. By understanding its value chain, a company can identify where to innovate and improve, ensuring that its competitive strategy effectively meets customer needs and responds to market dynamics. Ultimately, the interplay between competitive strategy and value chain structure drives a firm's overall performance and success in the marketplace.


What is value chain on MIS?

In Management Information Systems (MIS), the value chain is a concept that describes the sequence of activities a company performs to deliver a valuable product or service to its customers. It includes primary activities (such as production, marketing, and sales) and support activities (like human resources and procurement) that contribute to a company’s competitive advantage. By understanding and optimizing the value chain, organizations can identify opportunities for efficiency improvements and cost reductions.


Define profit based organization?

These are the organizations, whose primary goal is to increase their profit margin. These organizations try to increase the value of their share by increasing the value of the company stock.


What is the relationship between value chain and competitor analysis?

A value chain of each competitor will certainly go ahead and help one understand the gaps which each competitor has in the respective chain. The company who is doing the profiling can then target these gaps as opportunity areas and build on its competitive advantage ..


Define narcotic drugs and gives their medicine value?

define narcotic drugs and give their value  


Define present value of an Annuity?

Your annuity typically has at least two values, Contract Value and Surrender Value. Contract Value: The value of your annuity as it sits today with the life company. Surrender Value: The value of your annuity if you were to surrender the policy and walk away with all your money.


How would you define material resource?

The definition of material resource is an asset in the form of material possessions. It can be anything of value owned by a company or individual.


How do you define a variable?

I define an variable by saying x- an value