ACTIVITIES THAT BRING VALUE TO THE CUSTOMER. PRIMARY ACTIVITIES
Accelerate your business with these expert tips on "Activities that bring value to the customer. Primary activities". Analyse and discover this TIP!
The value-adding activitiesi.e, the primary or main ones in which you must focus are those that If I stop making them, the customer notices that something is missing and the other way around, that when I execute them, the customer perceives more value.
To identify the activities that add value to your business, you can follow the steps below:
- Analyse your company's value chain: study how processes and activities are carried out in your company to understand where value is added.
- Identify critical activities: identify which activities are key to the success of your business and where the greatest value is being generated.
- Assess the cost of each activity: To understand the importance of each activity, it is necessary to assess its cost and compare it with its value added.
- Consult with clients: customers can provide valuable insight into the activities that add value from their perspective.
- Analyse the competition: study how competing companies are adding value and look for opportunities to improve.
In a nutshell, the identification of activities that add value in a company requires a combination of internal and external analysisas well as a careful assessment of costs and outcomes.
Here are some practical examples of how companies have found competitive advantages by analysing their value chain:
- Example 1: Clothing Manufacturer
- Primary Activity: Internal logistics
- Competitive Advantage Found: They found that by producing in factories closer to the target market, they could significantly decrease shipping times.
- Result: Quick response time to fashion trends, resulting in increased sales.
- Example 2: Technology Company
- Primary Activity: After-sales service
- Competitive Advantage Found: They implemented a highly efficient 24/7 technical support.
- Result: Improved reputation and customer retention.
- Example 3: Cafeteria chain
- Support Activity: Technological development
- Competitive Advantage Found: They developed a mobile application that allows for pre-ordering and loyalty programmes.
- Result: Increased purchase frequency per customer and improved user experience.
- Example 4: Logistics Company
- Primary Activity: Operations
- Competitive Advantage Found: Optimisation of routes and use of environmentally friendly vehicles.
- Result: Reducing costs and carbon footprint, attracting environmentally conscious customers.
- Example 5: Online Grocery Store
- Support Activity: Human resources management
- Competitive Advantage Found: They implemented a comprehensive training system for their customer service employees.
- Result: Exceptional customer service, which resulted in high customer retention.
- Example 6: Software Company
- Primary Activity: Marketing and sales
- Competitive Advantage Found: Pricing strategy based on perceived value, offering different versions of the software for different market segments.
- Result: Increased customer acquisition and customer satisfaction, as they feel they receive a good return on their investment.
Each of these examples shows how a careful analysis of the cThe value chain can reveal opportunities to create competitive advantage. These advantages can be in cost, differentiation, customer service, or any other area that adds value for the customer or reduces operating costs.
Artificial intelligence can be a valuable tool for identifying competitive advantages in a company's value chain in a number of ways:
- Data Analysis: Artificial intelligence can help in the preliminary analysis of data related to each activity in the value chain. For example, it could help analyse sales reports, market research, or customer feedback to identify opportunities or weaknesses.
- Idea Generation: It could be used to generate ideas on how to optimise different aspects of the value chain. This can include everything from strategies to improve efficiency in production to methods to improve the customer experience.
- Benchmarking: Artificial intelligence can provide information on best practices in the industry and how other companies have optimised their value chain, which can be useful for benchmarking.
- Task Automation: For support activities such as human resource management or customer service, artificial intelligence could automate some tasks, allowing the company to focus its resources on more strategic activities.
- Trend Identification: It can help identify emerging trends in the market or changes in consumer behaviour that could impact the value chain, allowing the company to adapt quickly.
- Hypothesis Validation: If you have an idea for a potential competitive advantage, you could use artificial intelligence to perform a quick analysis of feasibility or possible outcomes.
- Risk Assessment: Artificial intelligence can help in identifying and assessing risks associated with different parts of the value chain, which can be useful for strategic decision-making.
- Decision Support: Through the generation of reports or summaries, artificial intelligence can provide a consolidated view of the value chain and potential areas for improvement, supporting senior management decision making.
It is important to note that although artificial intelligence can be very useful for these tasks, it is a tool to be used in conjunction with human analysis and does not replace expert judgement in strategic decision-making.
CASE STUDY: "Mary's Delights".
Context: Maria is a pastry enthusiast who decided to start her own personalised cakes and biscuits business. She faces a saturated market with numerous bakeries, online shops and independent chefs. Despite having a high quality product, she finds it difficult to stand out. He decides to join MentorDay's accelerator programme to boost his business.
Phases you go through in the mentorDay acceleration programme:
Phase 1: Identification of the Value Chain. During the programme, they help you to identify your value chain, which is divided into:
- Primary Activities: Purchasing of ingredients, production, marketing and sales, delivery, after-sales service.
- Support Activities: Supplier management, technological development (online ordering platform), human resources and financial management.
Phase 2: Analysis and Diagnosis: Through workshops and mentoring, Maria analyses each activity in detail:
- He finds that his production is efficient but which could automate the ordering and delivery process.
- At marketing and sales, although it uses social media, it does not have a solid strategy.
Phase 3: Identification of Competitive Advantages
After diagnosis, identifies that its true value is in the high quality ingredients and their ability to customise cakes and biscuits to the customer's exact taste. It decides that this will be its competitive advantage.
Phase 4: Implementation
- Automate your ordering system to enable customers to personalise your cakes and biscuits online.
- It is associated with local suppliers of organic ingredients and advertises this as a key differentiator.
- Implement a marketing strategy based on stories of satisfied customers and the uniqueness of its ingredients.
Phase 5: Results
Maria sees a 30% increase in orders in the first three months after implementing these changes. In addition, it achieves to gain 20% more loyal customers thanks to the improved after-sales service. Your business now not only survives in a saturated market but thrives, all thanks to the precise definition of their value chain and the identification of a sustainable competitive advantage.
The MentorDay acceleration programme was crucial to Mary's understanding of her cThe value-added chain will find its niche in a competitive market. Now, "Delicias de Maria" is a brand recognised for its quality and customisationallowing Maria to compete effectively and generate sustainable revenues.
APPLY THIS TIP TO YOUR PROJECT
- 💻 PRACTICE with an expert in the next practical webinar.
- 🔎 CONSULT more related TIPs with this same theme.
- 📖 AMPLIA your knowledge by downloading this EBOOK.
THINK ABOUT YOU
- 🚀 IMPULSA your company in the next acceleration programme, ¡book your place now!
- 🥁 PRACTICE with your project in this practical webinar, ¡apply for your place!.
- 🌐 CONTACT with other entrepreneurs and companies, ¡register and take part in the next Networking!
THINK ABOUT HELPING OTHERS
We are sorry you did not find it useful.
Help us improve this TIP!
Leave us a comment and tell us how you would improve this TIP