This workshop exercise can be used for knowledge and skill development

| March 30, 2017

Question
Competitive Analysis

Workshop exercises

Company Name: Optus Australia

Topic Area: Firm Level Analysis

Framework: Value Chain

General

This workshop exercise can be used individually. This workshop exercise can be used for knowledge and skill development and may be incorporated into the assessment for this unit.

Task

Based on an individual company (or a SBU – Strategic Business Unit) of your choice (as as directed by your lecturer) you are to apply the Value Chain framework.

The exercise is designed to develop skills in applying the framework – not you becoming an instant expert.

Clearly you do not have access to all the key information that allows you to do this in detail. But YOUR IDEAS and THINKING are equally important –especially for this exercise.

There are five (5) key questions to do.

1.Consider the relative importance of each of the activity areasin the value chain i.e. in generating value to the company and customer. Remember not every company has to do all activities and the relative importance of each activity will differ between companies.

You might use a 1-10 scale to assign the relative priority – or even a more simple HIGH/MEDIUM/LOW scale.

2.You are to estimate the relative strength or weakness of each activity area. This is really using the value chain as part of a company resource/capability and competency analysis.
Again – you might use a 1-10 scale to assign the relative priority – or even a more simple HIGH/MEDIUM/LOW scale.

3.Companies often need to identify areas to REDUCE COST – especially if the company has adopted a cost advantage strategy.
You are to identify areas within each activity area that you think the company may be able to lower cost. But remember a decision to reduce cost in an area must also consider the relative importance of each activity area to overall company performance.

You should list areas of potential cost reduction and ways the company might do this.

4.An alternative company strategy is DIFFERENTIATION.

You are to identify areas within each activity area that you think the company may be able toincrease price – via some form of differentiation or added value to the customer.

5.The value chain can also be used to identify potential areas of business improvement – BY BETTER LINKING core business activities. It may be by better linking Purchasing with Operations a firm might have greater efficiency (guaranteed component supply) and maybe lower cost.

You are to suggest which of the core company activity areas should be closely linked – and how this would benefit the company.

Company: Optus

Note: First put the values in above format in bolt points and after explain each area separately with Headings. (Words: 1800)

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