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Costs and strategy management

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  1. External Analysis
    1. Environmental Analysis
    2. Market Segmentation
    3. Overview of competitors
    4. The sectoral analysis
    5. Decathlon Customer
    6. Catchment area
    7. Synthesis of external analysis
  2. Internal Analysis
    1. The questionnaire
    2. Analysis of strengths
    3. Analysis of weaknesses
  3. Strategic recommendations
    1. Issues and Risks
    2. Problematics
    3. Marketing objectives
    4. Target communication
    5. Communication message
    6. Means of communication
  4. Measure of the Outcome

I. Current Strategic Context

- In a context that is characterized by increasing turbulence and constant strengthening of competition, the ability of a company to create value for the customer appears to have become a sustained competitive advantage.

- The value of the product is what the customer is willing to pay a higher amount for and this is produced by cutting prices to one that is lower than the competition's for equivalent benefits or providing unique benefits that more than offset a higher price.

- The strategy tries to determine what value is created for the customers.


II. The concept of the value chain

- The objective of the value chain is to account for the relevant activities of the firm in a strategy to understand the need for the costs and seize existing and potential sources of differentiation. This is broken down into large corporate functions that serve to achieve two broad categories of activities: primary activities and support activities (that support the core activities).

- Through this analysis, it will be possible to identify activities that are a source of sustained competitive advantage for the company.

- The value chain is part of a system that is composed of other components that contribute to a company like suppliers, distributors, customers etc. By studying the vertical links between its own value chain and that of its customers, the company can focus on creating value in its products for its customers.

- However, the strategy is not only meant to determine the value for the customers but is also meant to ensure that he is aware of the value that the company is offering.

Tags: value chain, concept of value chain, costs and strategic management

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