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7 Value Chain Redesign

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Submitted By Lemon
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The main challenges are:
 Product and service: The customer process drives the value chain. A company’s business model must dictate which competencies account forits position in the value chain, which products and services it delivers itself, who serves the rest of the customer process, and which companies form part of the same ecosystem.
 Customer access: Many customers expect their business partners to have a global presence and market share with a guaranteed future. Economies of networks, scale, and standardization are vitalizing the market in a way previously unseen in economic history. Particularly with new, complex products and services, market share is the critical success factor.
 Ecosystem: The customer wants reliable, coordinated services. If one company is unable to offer all the necessary services, the customer needs an ecosystem based around the products and services of the main partner in the value chain. The members of the ecosystem align their services with the main provider, and the main provider cultivates the ecosystem – because today’s customers are won with ecosystems not products.
 Customer retention: The more complex the product and the closer the partnership, the more difficult it is for the customer to switch to a different manufacturer or ecosystem.
 Emotion: In a fast moving economy, confidence and convenience are key to allowing businesses to concentrate on core issues. However innovative it may be, a small provider with a weak ecosystem is considered extremely risky.
 Price/cost: Many companies are reaping substantial benefits from having the right ecosystem. Global access to customers helps enterprises to achieve economies of scale by sharing the fixed costs for development, assets, and marketing across high volumes. In addition, companies must make use of low-cost locations.
 Speed: Customers will

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