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Personal Value Chains Understood by Few

August 3, 2012

Michael Porter wrote in his seminal work about value chains within enterprises and whether they have competitive advantages or not depends on the enterprise’s ability to connect with stakeholder’s value chains. For instance, a diaper manufacturer selling cloth diapers in the late 60’s understanding the growth of two income families and the harried pace of the family dynamic. Challenge in the consumer value chain? time constraints. Solution? disposable diapers.

Today we have social media (not meant to be a comparison to diapers). If you look at how each is developed and the part of our value chains they fit within, the charts above make sense. Today, career, employment, professional development and professional networking are important components of our collective value chains. So it should come as little wonder of the social media titans, one stands above the rest in key measures of success.

The social network for business professionals announced its second quarter earnings yesterday and once again the company beat expectations. LinkedIn now has 175 million users and its revenue grew 89% year-over-year to $228 million. 

The questions for you to ask: do we fully understand the value chain of our target customer/client? do we fully understand our competitive advantage within our own value chain? and how are we filling a need? Which leads to an important answer to a strategic question: Why do we have a right to exist in the marketplace? And is our customer experience effort aligned with the strategy?

When you can answer these questions, you can execute like LinkedIn in the face of tumult.

 www.statista.com/chartoftheday/media

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From → business, Strategy

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