Question

1. Describe the differences between value delivery network and value chain. Explain how each are critical to successful marketing planning.

Answer 1

A value chain is the collection of internal teams that carry out value-creating operations planning, manufacturing, selling, distributing and promoting the goods of a business while value delivery network is a network consisting of the manufacturer, vendors, retailers and, eventually, consumers who collaborate with each other to enhance the efficiency of the whole organization in providing value to clients.

A value chain is a step-by - step management model to turn a product or service from concept to practice. Value chains aim to maximize the performance of a organization so that the company can produce the best profit at the lowest possible expense. The ultimate goal of a value chain is to build a strategic edge for a management by improving profitability while retaining fair prices.

Delivering consumer value is as important as finding opportunities for value and choosing place for value. Activities related to genuinely allowing consumers to access the benefit the organization provides in its goods and services are moments of reality for every manufacturer company. Therefore, while the process of strategic analysis and strategic choice is vital in finding value development opportunities that can turn into a sustainable competitive advantage for the organization, the consistency of implementing strategic marketing choices, i.e. providing consumer value, is key to business success.