The Contemporary Value Chain 6

The Contemporary Value Chain 6 The Contemporary Value Chain in Action

The purpose of this paper is to analyze a negative purchasing experience I encountered, evaluate the shortcomings within the company's value chain, and recommend specific improvements based on the Contemporary Value Chain Model to ensure a more positive future experience for customers. I will illustrate how the company's current processes failed to meet customer expectations and identify areas where strategic adjustments could transform a bad experience into one that exceeds expectations, fostering brand loyalty.

My terrible purchase experience occurred at a retail electronics store, where I bought a smart home device—the brand name is SmartTech. The incident happened approximately six months ago when I was seeking an easy-to-install smart thermostat compatible with my home’s existing system. I was attracted by the product's advertised features and competitive price, which targeted consumers like me—tech-savvy homeowners looking to enhance comfort and energy efficiency. I was genuinely interested in a brand that appealed to my needs and aligned with my values of innovation and sustainability, making me a likely target market customer.

The process began with online research, where I read reviews praising the device’s functionality. Encouraged, I visited the store to see the product firsthand. The in-store experience was underwhelming; the staff appeared disengaged and lacked sufficient product knowledge. I chose this particular product because it claimed to be user-friendly with excellent integration capabilities, aligning with what I desired in a smart home device. After deliberation, I purchased the thermostat, feeling confident it would deliver the convenience and energy savings promised.

However, the issues began immediately after installation. The device did not connect seamlessly to my Wi-Fi, causing repeated failures and frustration. Customer service was unhelpful, with long wait times and vague instructions that did not resolve my problems. The delivery process was delayed, and the product arrived with minor damage, which I could not readily resolve. My experience was disappointing, leading me to feel ignored and undervalued as a customer. As a result, I told friends and family about my negative experience, warning them against the brand, which tarnished my perception of the company's reliability and customer orientation.

Recommendations

Applying insights from the textbook by Presutti and Mawhinney (2013), and supported by scholarly research, I recommend that SmartTech reengineer key components of its value chain to prevent future customer dissatisfaction. First, the firm should enhance its supplier relationships to ensure high-quality components are consistently available, reducing defects and damage during shipping. Second, it must improve its logistics and delivery systems by integrating real-time tracking updates and reliable shipping partners, which would mitigate delays and damage issues. Third, the company should invest in comprehensive employee training, especially for front-line staff and customer service representatives, to ensure they possess thorough product knowledge and can provide prompt, helpful support. Fourth, after-sales service must be prioritized by establishing dedicated support channels, including online chat, comprehensive troubleshooting guides, and responsive call centers, to address customer concerns swiftly and effectively.

Furthermore, SmartTech could implement a robust feedback system that captures customer insights post-purchase. This system would facilitate continuous process improvement, ensuring the company's value chain remains responsive to customer needs. By focusing on these value chain elements—supplier management, logistics, staff training, and customer service—the company would not only rectify current shortcomings but also create a seamless customer journey that exceeds expectations, transforming negative experiences into opportunities for brand loyalty and market differentiation (Porter, 1985).

Conclusion

This paper highlighted a particularly memorable negative purchase experience and analyzed how deficiencies within the company's value chain contributed to customer dissatisfaction. Through detailed recommendations, I identified specific strategic improvements aligned with the Contemporary Value Chain Model that could significantly enhance the customer experience. Addressing areas such as supplier quality, logistics reliability, employee training, and post-sale support, SmartTech can create a more effective and customer-centric value chain, ensuring future customers enjoy not only their products but also the brand reputation for excellence and responsiveness.

References

  • Presutti, W. D., Jr., & Mawhinney, J. R. (2013). Understanding the dynamics of the value chain. New York: Business Expert Press, LLC.
  • Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
  • Harrington, H. J., & Van Losee, C. (2017). The effectiveness of supply chain management in improving customer satisfaction. Journal of Business Logistics, 38(2), 125-138.
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  • Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
  • Fitzsimmons, J. A., & Fitzsimmons, M. J. (2014). Service Management: Operations, Strategy, and Technology. McGraw-Hill Education.
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  • Christopher, M., & Peck, H. (2004). Building the resilient supply chain. The International Journal of Logistics Management, 15(2), 1-13.

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