The Research On Value-chain Of Changsha Phi Della Technology Co. Ltd.

This article is based on Phi Delia Technology Co., Ltd. We're adopting professor Michael Bolter's value-chain theory, comparing and analyzing its different strategy and result during the process of innovation.Phi Delia was established in 2001, specializing in industrial measuring tools. Its business scope includes not only manufacture of products, but also relevant technological services. At initiation company paid much attention to technology, products exploration and quality. However, Phi Delia confronted unprecedented lurch because the newly-built company was not so famous and lacked innovation in marketing.Research indicates that the weak market position of a new company results from its poor value-chain and internal relations among all joints. In one word it means that the strategy doesn't conform to market and competition. The value-chain designed accordingly cannot match up with those of competitors, not mention competitive edge. Compared with rivals Phi Delia's production cost was higher and didn't construct different value-chain with specialty.Under pressure of competition, Phi Delia made great innovation in its strategy of operation and competition. It emphasizes different operation conception, integration of internal and external resources, build of relevant mechanism and special competitive edge. On this basis new value-chain was established.Research indicates that value-chain constructed under guide of overall strategy will help a company win both competitive advantage, market position, customers and finally its secular and healthy development.In this article, the author regards brand-building and culture-building as two important parts of value-chain. According to our survey famous brand will bring high customer loyalty, which would offer the company greatest support to stand up tough competition. Meanwhile culture is an infrastructure of a company, which conducts people's behavior and has great impact on all staff and then performance of a company. Therefore culture is an important measure to coordinate all joints on value-chain.This article finally concludes that small companies could set up their own competitive edges through reasonable design of value-chain and suitable arrangement of all value actions.