Value chain analysis essay. Value Chain Analysis Essay Examples 2022-12-28
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A value chain analysis is a tool used to assess the various activities and processes that go into creating a product or service. By breaking down the value chain into its individual components, a business can gain a deeper understanding of how it creates value for its customers and how it can improve its operations.
The value chain analysis consists of two main components: primary activities and support activities. Primary activities include the processes that directly create value for the customer, such as product design and development, production, marketing, and sales. Support activities, on the other hand, are processes that support the primary activities, such as logistics, procurement, and human resource management.
One of the key benefits of value chain analysis is that it allows a business to identify areas where it can create a competitive advantage. For example, if a business has a more efficient production process than its competitors, it can produce goods at a lower cost and therefore offer them at a lower price, giving it a competitive advantage.
Another benefit of value chain analysis is that it can help a business identify areas where it can improve its operations. By understanding the various activities and processes that go into creating a product or service, a business can identify bottlenecks or inefficiencies and take steps to improve them. This can help the business to reduce costs, increase efficiency, and improve the overall quality of its products and services.
In addition, value chain analysis can be used to identify opportunities for vertical integration. This refers to the process of a business taking control of some or all of the activities in its value chain. For example, a company that manufactures its own raw materials may be able to reduce costs and improve quality control by vertical integration.
Overall, value chain analysis is a valuable tool for businesses looking to understand how they create value for their customers and how they can improve their operations. By breaking down the value chain into its individual components, businesses can identify areas for improvement and take steps to create a competitive advantage and improve their operations.
Benchmarking And Value Chain Analysis Essay Example (400 Words)
For this purpose, Porter identified a range of interrelated generic activities common to a wide range of firms. The activities entailed in the framework are discussed in detail, with respect to competitive strategies and value to the customer. The exchange of cost information — info abuse, suppliers would be required to increase efficiency up to the other suppliers, suppliers will be replaces. If a portfolio contains multiple individual projects with dependencies and common resources constraints , it is a candidate for more effective modeling using the dynamic business-simulation planning processes. According to Henry 2011 , for a firm to utilize the value chain effectively in achieving its strategic goals, it should identify its primary and support activities Henry, 2011.
Value chain and assessment of strengths and weaknesses Free Essay Example
European Management Journal, 34 3 , 282-295. As part of their product strategy they venture in developing a product with different flavour or fusion. However, it is difficult for managers and employees to make themselves acquaintance with these abilities. They determine the cost, quality and reliability of the supply. New technology should be employed to enhance its images and competitiveness. The effective Value Chain Analysis requires EY to realise that all activities or functions do not require same scrutiny level. Strategic Analysis: Strategic Management Of Starbucks 2498 Words 10 Pages They target premium, high-movement, high-perceivability areas close to a mixture of settings, including downtown and rural retail focuses, office structures, college grounds, and in select provincial and off-expressway areas over the world.
For their support activities of the value chain, it either add value by themselves or add value through important relationships with both primary activities and other support activities such as procurement, technology development, human resource management, and general administration. Five factors are easy to define. Porter, 1985 The five forces analysis is intended to help corporations understand how gainful an industry is and also what they can do to alleviate unenthusiastic forces and thereby improve productivity. The question is how does a firm create that competitive advantage? Manufacturing companies create value by acquiring raw materials and using them to produce something useful. Reference The Harvard Business Essentials: Strategy: create and implement the best strategy for your business HD30.
. Value chain analysis a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation Jurevicius, 2013. EY cannot trade all activities in the external market. In order to have more advantage that other businesses, a firm should be able to utilize a cost advantage and differentiation. Meanwhile, during the strategic analysis process, the managers can make full use of their advantages to gain more efficiency. Meaning that if the identified changes are carried out it will help the organization achieve some if not all of its activities Howell 135. All papers are written from scratch.
The goal of any given business strategy is to achieve a competitive advantage. An example of a firm that has achieved the maximum benefits from value chain analysis is the computer producing company Apple. The technological integration in production, distribution, marketing and human resource activities requires EY to realise the importance of technology development. Pay for the order Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. Studying these interrelationships can help a company take benefit from coordination and joint optimisation. Dow has used Value Chain Analysis to explore the unique marketing opportunities and extracted value from generic commodity market. We have a Noone will ever know that you used our assignment help services.
But if it is intensive, it should be pay much more attention to. It can also analyse the operational activities to expand the presence in geographically dispersed areas. The client can upload extra material and include additional instructions from the lecturer. It is unadvisable for managers to make a long-term plan and then ask the whole company to implement it days and nights. There are two levels: interrelationships among activities within the company and 2 relationships among activities within the company and other external stakeholders like customers and suppliers. The market that Nike participates is very price sensitive.
Some examples are- automation software, technology-supported customer service, product design research and data analytics. Senge 2005 likened value chains to a glue that connects disparate businesses, locally, regionally or globally. He offers viewing a firm as a sequential procedure of value-creating actions as a means of a influential conceptual tool for thoughtful the building slabs of competitive advantage. This information provided little basis for coordination and control of interdependent activities in the supply chain. The CocaCola Company has different strategic business units for its product types like Sports drink, Juice drinks, Squash, Water, Low sugar soft drinks, general soft drinks and energy drinks.
Critical Evaluation Of Value Chain Analysis Marketing Essay
Henry, A 2011, Understanding strategic management, Oxford University Press, Oxford. It starts from suppliers being procured with raw materials, then to a chain of value-added ventures in production process and product marketing that ends at handling the last product to potential customers through distributors. By applying value chain analysis an organization is able to determine which activities within the chain gives the most value. Another example is Infosys that began to move up the IT services value chain into consulting and end-to-end IT solutions while continuing to offer low-end software services. Therefore, value chain analysis emphasizes not only the production process but also the various activities that make up the chain McCormick and Onjala, 2007. Apprentice Trainee Course — ensuring stable source of skilled manpower.
For Bidco it was to totally shift from relying on cotton for their cotton garments to edible oil manufacturing from crude palm oil. It does not need to invest a lot of money in advertising since customers recognize its brand using its unique LOGO Melissa 260. However, it is also important to note that the Porter Value Chain model application depends on the unique contextual variables that must be considered when assigning the weightage to primary and secondary value chain activities. These value generating activities results into creating competitive advantage for the firm. It will help the company make the greatest profits as well.
From the trees harvested from a local sustainable forest being brought in to the factory and make them into timber. However, team members also carefully coordinate tasks to ensure they combine their individual efforts in effective ways. The focus of this report is to study the value chain analysis in detail along with the advantages and disadvantage of the value chain analysis. They are able to handle business papers of any subject, length, deadline, and difficulty! Other companies such as Adidas should obtain many suppliers in the industry to neutralize the effect of Nike in the market. A big international company like IKEA managed to maintain their high quality of products because they have an IKEA Test Lab, which is one of the world largest furniture laboratory located near the company headquarter.
