Importance Of A Business s Value Chain - 2382 Words

The Importance of a Business’s Value Chain Serge-Eric Keller Marvin Hagen 06/26/15 The Importance of a Business’s Value Chain Introduction It is the wish of every business to be able to achieve and maintain a competitive advantage. A competitive advantage can be considered to be an advantage, a condition or even a position that will make a firm to be able to operate efficiently and also be able to produce products or services that are of a higher quality than the previous ones or than the other competing firms. When a firm is able to achieve increased earnings as compared to the costs it incurred, then it can be said to have achieved a competitive advantage according to Michael Porter, a†¦show more content†¦Michael Kors Holdings Michael Kors Holdings is an American company that deals with clothing and fashion accessories, including watches and bags. It has many branches around the world. The fashion industry is a very competitive industry especially because fashion products are subject to changes more than any other consumer goods. People always want to stay ahead of the fashion and these industries therefore have to make more efforts in order to be able to win over customers. Fashion products have a very short shelf-life as compared to other products and sometimes it becomes hard for firms to be able to forecast the demand of these products (Christopher et al., 2004). Michael Kors Holdings being an international company with its branches spread in different parts of the world, means that it has a huge global market to serve. Going international has many advantages but at the same it also has its disadvantages. In the global market, the changes happening in the market and the competition are on a very high level. Competition is very high especially when it comes to those fast moving products or services whereby the products or services are of a short cycle and consumer demand change each day. The fashion industry is such in case whereby the products are of a short life. The industry is also characterized by