Porters Value Chain Analysis - 1879 Words

The value chain shows the internal steps a company or organization takes to transform inputs into outputs (Jurevicius, 2013). As the products pass through each stage or activity, value is added until they ultimately are ready to reach the consumer. 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). The use of value chain analysis differs from small companies to large corporations. Ultimately, value chains are examined to increase performance of the company, whether it be with respect to cost, or productivity. What is Porter’s Value Chain? VCA, or value chain†¦show more content†¦The next primary activity is operations. This is the step where the raw materials are converted into their output, or final product (Bhasin, 2017). Next, is outbound logistics, which is where the final product is where the finished goods are sent from the manufacturer to the retailer, or distribution center for sale (Bhasin, 2017). The next step is marketing and sales, where the company applies different marketing strategies to attempt to increase sales. The amount of profit the company obtains relies solely on sale of products and services, therefore making this step vital for company success (Bhasin, 2017). Value can be added here if the marketing of the product, and company, are done properly. Proper marketing that is done is such a way that enhances the brand name and equity, as well as does not make false promises to the consumer (Bhasin, 2017). With these in mind, once again, the ultimate goal of this step is to, â€Å"i nform buyers about products and services, induce buyers to purchase them, and facilitate their purchase†, (Porter s Value Chain). The fifth, and final, step of primary activities in the value chain is services. This step is one of the most important because it effects the word of mouth by consumers, and future sale of the product (Bhasin, 2017). â€Å"Service includes all the activities required to keep the product or service working effectivelyShow MoreRelatedAnalysis Of Michael Porters Value Chain2178 Words   |  9 Pagestowards the quality of the product in the mindset of the customers. Discussion Question 6.3: In his value chain examination, Michael Porter distinguished five essential quality producing ventures in ordinary business operations. They are: â€Å"inbound logistics, operations, outbound logistics, marketing and sales and service.† (Porter, et al 2010) Porter s emphasis point in the worth chain portrayal is that organizations can produce the best overall revenues by accentuating client appreciationRead MoreAnalysis Of Michael Porter s Value Chain Essay1740 Words   |  7 PagesDuring 1985, Michael Porter, one of the most important American economists, introduced one of his most famous theories: â€Å"The Value Chain†. Through this model is possible to describe an organization like a set of processes. Precisely nine processes divided in five primary activities and four support activities that help the business to gain its competitive advantage. The primary activities are composed by â€Å"Inbound Logistics†, â€Å"Operations†, â€Å"Outbound Log istics†, â€Å"Marketing Sales† and â€Å"Service†, whileRead MorePorter s Value Chain Of The Petroleum Sector1338 Words   |  6 PagesPorter’s Value Chain in the Petroleum Sector A value chain is a full range of activities, including design, production, marketing and distribution that businesses go through to bring a product or service from conception to delivery. The value chain analysis was popularized by Michael Porter in 1985. Porter investigated the sequence of activities that are required to bring a product or service from concept through different stages of production, distribution, and to the final customer. Porter wroteRead MoreBlackmores1291 Words   |  6 PagesAustralian School of Business ACCT5910 Business Analysis and Valuation Lesson Plan †¢ †¢ †¢ †¢ †¢ †¢ Dot Com case study Why do we need to undertake strategy analysis? Industry I d t analysis l i Competitive strategy analysis Corporate strategy analysis SWOT analysis Australian School of Business B i Class 2: Strategy Analysis gy y Dot Com – NASDQ index from 1 Jan 1996-30 Dec 2002 School of Business B i Australian A. Why Strategy Analysis †¢ †¢ Strategy drives the actions of an organisationRead MorePorters Five Forces Value Chain1396 Words   |  6 PagesDay #2 Porter’s Strategic Models: The Five forces and the Value Chain CIS Department Professor Duane Truex III The Information Systems Strategy Triangle Business Strategy Organizational Design Strategy ICT/Information Strategy Professor Truex E-CommercePrinciples 1 HOW CAN INFORMATION RESOURCES BE USED STRATEGICALLY? Professor Truex E-CommercePrinciples Aligning IS/ICT strategy (Infrastructures) with business strategy †¢ Using multiple approaches to evaluatingRead MoreA Critical Discussion Of Strategic Model Essay1599 Words   |  7 Pagescritical discussion of strategic model (Value chain analysis) Value Chain Analysis is a theory first given by Michel Porter. According to him it is a useful tool for working out how a company can create superior value for their customers. He also suggested that the more value a company can create, the more people will be prepared to pay a good price for their product or service. So every company should make some strategic decision how they can improve their value chain. For Banglalink it is very criticalRead MoreAnalysis Of The Book Pablo Picasso s Competitive Advantage Creating And Sustaining Superior Performance By Michael E. Essay948 Words   |  4 Pages one of the key elements that ultimately controls the destiny of an organization, is their competitive advantage in a particular industry. The competitive advantage is defined as â€Å"an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices†(Competitive Advan tage | Business.). In order to deeper understand of competitive advantage in a firm, I chose to read the book â€Å"CompetitiveRead MoreEssay on Southwest Airline Company Overview1413 Words   |  6 Pages vision and values? What generic strategy is it following? (E.g. cost leadership or differentiation?) Who are the key stakeholders? These questions are indicative – you don’t need to answer every part in detail or to create sub-headings; just provide a short succinct summary; that is the challenge! Draw your information directly from the case PART ONE – EXTERNAL ANALYSIS (600 WORDS) OVERVIEW Briefly state the purpose of the analysis. MACRORead MoreCompetitive Analysis of Cargills Food City1467 Words   |  6 Pages[pic] [pic] [pic] CONTENT Page Porter’s five forces Model†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦01 Factors affect Porter’s Five Forces Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦02 Cargills Food City at a Glance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦03 Analysis of porter’s five forces model in relation with cargills food city †¦Ã¢â‚¬ ¦...03 Threats of New Entrants†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..03 Threat of Substitutes†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦04 Degree of rivalry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦05 Power of buyers†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.06Read MoreWalmart vs Tesco1000 Words   |  4 PagesWal-Mart and Tesco | A Comparative Analysis | | Table of Contents Background and History 2 Culture of Organization 3 Core Values for Wal-Mart 3 Core Values for Tesco 3 Two Powerhouses Globally 4 Existence in current markets 4 Expansion 4 Industry Analysis 4 Strengths 4 Weakness 4 Opportunities 4 Threats 4 Porter’s Five Forces for Wal-Mart 4 Porter’s Five Forces Model for Tesco 5 Financial Analysis 5 Balance Sheet 5 Income Statement 5 Strategy 6 Mission