Value creation occurs through various activities within an organization's value chain.

Different organizations in an industry often contribute value at different stages of this chain.

For instance, in the automotive industry, Tesla excels in the technology development stage of the value chain, emphasizing innovative vehicle design and sustainable energy solutions.

Toyota's expertise lies in efficient manufacturing, employing the Toyota Production System for continuous improvement and lean manufacturing to enhance efficiency and reduce waste.

BMW excels in branding and marketing, establishing a luxury brand associated with performance and engineering excellence.

General Motors or GM has a well-established supply chain network. GM's ability to manage suppliers, handle inventory, and distribute vehicles efficiently contributes to its value creation.

Mercedes-Benz prioritizes high-quality service, customization, and post-sales support, providing substantial customer value through exceptional experiences.

These examples highlight that successful enterprises prioritize their core activities in the value chain, ensuring exceptional performance to sustain a competitive advantage.