Monopoly paved the way for competition in the global market. Competition has made companies restructure their management systems so that they can come out with a more improved and competitive product. Marketing strategies have evolved for companies to stay ahead of the competition and this is where replicas have emerged. The computer microchip industry can not be left out as it is one of the most competitive industries in the global market.
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Business and value chain management coexist. Cardy (2008) defines business management as the act of getting people together to achieve the aspired goals and objectives. It embraces planning, organization, and controlling an organization to acquire the desired goals. On the other hand, Robbins & Decenzo (2008) define value chain management as systematizing the process of receiving inputs, processing them to add value, and then making the goods available to the consumer through selling.
As mentioned earlier, the invasion of the replica has led to the depreciation of sales and profits of the original companies. For example, ABC Microchip Company is a microchip company and it has come up with very unique microchips but their market pie has been chipped off by replica microchips. The question for this company is, for them to be competitive enough what measures do they have to take?
Robbins & Coulter (2007) give six requirements for the value chain management. These requirements will help the ABC microchip company to become more competitive and take back its stolen market share. Collaboration and Coordination as provided for by Robbins (et. al. 2007) is the first requirement to be looked at. ABC Microchip Company should note that for its success this requirement should be observed. For example, the sales team should coordinate with the rest of the members in the chain so as the market intelligence is shared and the microchips are improved.
Secondly, Robbins (et. al. 2007) cites that there must be investment in information technology. The world today is not the world yesterday in terms of technology and the Company should be focused to advance its technology. Investment should be geared towards advancements of technology. This in turn leads to inventory of complicated but more affordable microchips which makes it hard for the competitors to easily duplicate.
Thirdly is the organizational process, Robbins (et. al. 2007). This is the way in which work is arranged or categorized. Changes must be done and the company should focus on strengthening bonds between them and their customer. If the bonds are stronger, then the company will ultimately earn full trust from their customers and even makes it harder for the competitors to break the market.
Leadership is another key element in the value chain management as pointed by Robbins (et. al. 2007). Where leadership is strong then mutual respect is earned and that brings quality and efficient outcome in the long run.
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Employees play an important role in this chain adds Robbins (et. al. 2007). Employees who are flexible and able to learn and adapt quickly to changes surrounding them are the best to have. This company should evaluate the flexibility of their employees so as to determine if they are fit to the ever changing technological environment.
Lastly Robbins (et. al. 2007) emphasizes on provision of support towards managerial customs and approach. This requirement is very important for the company to stay competitive in the long run.
To conclude, the six requirements highlighted by Robbins (et. al. 2007) are of utmost important for this microchip company to succeed and become the lead in this game of competition. Therefore it should take a keen look and apply each requirement effectively for better outcome.
Cardy, L. R. (2008). Management: People, Performance, Change (3rd Ed.). New York.USA.
Robbins, S.P. & Coulter, M. (2007). Management (9th Ed.) New York: Prentice hall.
Robbins, S.P. & DeCenzo, A.D. (2008). Fundamentals of management (6th Ed.).Von Hoffman Press.