1.To build and preserve a significant market share in any competitive market, a firm must offer a unique value proposition, the key source of customer value, to its target market.
2.Firms following Kaizen Strategy couple their strategy with market power to raise significant barriers to potential entrants thereby preserving their market share and long-term profitability.
3.Firms following a value differentiation strategy focus on continuous improvement and customer satisfaction.
4.With differentiation strategy, innovation is more important than cost control.
5.Product costs do not play as critical a role in pricing as the market’s perception of the value differentiation.
6.A value chain is a set of logically sequenced, value adding activities that convert input resources into products or services in a manner consistent with the chosen business strategy.
7.It is typically best for a firm to outsource or form strategic alliances with outside suppliers to perform those value activities in which it does not have a unique advantage.
8.The value chain should never extend beyond the boundaries of the firm.
9.The activity-based approach to configuring the value chain is useful for both value differentiation and cost leadership strategies.
10.Firms following the cost leadership strategy intensively scrutinize costs, starting once the product is finished to after the customer purchases the product.