BusinessMGT Unit5 discussion Assignment Example | Topics and Well Written Essays - 500 words

BusinessMGT Unit5 discussion - Assignment Example (â€Å"Competitive Advantage†, 2010) Smart Chips Company’s market share has been hurt by the clone microchips. Though the company specializes in developing first-of-its kind microchips, but the makers of clone microchips release microchips that are similar to the original but are sold at comparatively lower prices. To recuperate their market share, Smart Chips Company needs to redesign its product in a way that it has a competitive advantage over the cloning microchips. To bring about these drastic changes, the firm will have to determine how to incorporate the value chain activities to create value and competitive advantage. Smart Chips Company’s profit and market share depend on its efficiency of performing these activities, together with value chain support activities. The value chain support activities include: administrative infrastructure management, human resource management, technology (R&D) and  procurement. In order to develop competitive advantage, Smart Microchip Company must have resources that are superior and which cannot be replicated by the competitors. A cost analysis should be performed to assess the areas where the cost can be reduced. Company must create cost advantage either by reducing costs at each level of the value chain or by reconfiguring the entire value chain. Better marketing can also help in increasing the number of sales of the firm. Promotion and service plays an influential part in the marketing of a business. With effective marketing, Smart Chips can also use product positioning, and quality checking as means of gaining competitive advantages over clone microchips. This may lead the company towards the road to sustainable success. SWOT analysis will also be helpful to Smart Chips. It is a tool used by companies to assess their strengths and weaknesses, and opportunities and threats in the market. It is a simple way of evaluating firm’s current