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What is Value Captured by the Supplier

Handbook of Research on Contemporary Approaches in Management and Organizational Strategy
The difference between the settled price for acquiring resources and the supplier's opportunity cost.
Published in Chapter:
Generating Competitive Advantages for the Polytechnic Universities in Mexico
Lizbeth Vargas-Cabrera (Polytechnic University of Puebla, Mexico) and Jesus Manuel Muñoz-Pacheco (Autonomous University of Puebla, Mexico)
DOI: 10.4018/978-1-5225-6301-3.ch023
This chapter proposes an analytical framework to understand the trade-offs of a firm dedicated to educational services for creating and sustaining a superior performance respect to its competitors. The proposed approach focuses on polytechnic universities as the firm understudy. Based on a statistical data from Mexican government, the five forces of Porter methodology is applied to found the clients, suppliers, new entrants, substitutes, and rivalry of the Polytechnic University of Puebla (PUP). In this scenario, the existing strengths are detected and the target of the firm to get a sustainable competitive advantage is defined. Finally, the strategies to break the barriers are proposed. The authors argue that by using those strategies the wedge between willing to pay of the clients and the opportunity costs of the suppliers can be improved. Additionally, they argue that the positioning (consolidation and reputation) of the PUP is achieved by applying the proposed strategies.
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