Question

Discuss any FIVE (5) benefits generated by the value delivery network of the online retailers. Provide your clear justification on the benefits.

Answer 1

The five benefits of Value network in online retaining are as Follows :

1.Reduced Cost: Any business in the initial setup required capital for land, warehouse ,Inventory, equipments etc to start the business and thus require much investment. Value network helps an organization to invest less by keeping the less inventory stocks and allow other retailers to get the ordered from customer and supply the product or service without having the need of physically stock the product.

2.Focus on core competencies: These refers to the core competencies of an organization like expansion of product or service,adding product mix, market segmentation etc. Value network helps an organization to impart less focus on delivery of product or service as its being done by the value networks and thus help the organization to get more time to focus on their main competencies which is very essential for the organization growth.

3.Wider customer reach: This refers to the wide number of customer get covered or attracted by an organization to use their product or service.Value networks helps an organization to reach to maximum number of customer from various geographical locations and thus increase in the wide spread of the product around the country or globe which ultimately helps the organization to get wider number of customer and helps in the growth of the organization.

4.Reduction in lead time: Now customer don't want to wait for a product or service after ordering or paying money for it want it as soon as possible.Now if the provider or organization fails to deliver the same in minimum lead time, it will lead to loose the customers and customer will approach another competitor in the market. Value network help to deal with this type of issue and deliver the product or service with minimum lead time and thus helps the organization to attain customer satisfaction and loyalty

5.Easy available feedback: Value networks helps to know the current state of products or service among the customer and current competitive strategies in the market.This network helps to know which product sell well in their specific areas of coverage.Their feedback can prove valuable in making a product that more customers need and want.