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Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
Porters Value Chain
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Porters Value Chain

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  • 1. IS 746 - ASSIGNMENT 3: Four activities from Porter’s Value Chain UPS BARCODING AND TRACKING SYSTEM DUNKIN’ DONUTS SMS ADVERTISINGVIRGIN MEGASTORES’ UNIFIED COMMUNICATION SYSTEM KENYA’S M-PESA: MOBILE MONEY TRANSFER SYSTEM Fatih Özlü 1777762 Middle East Technical University 29 May, 2011 1
  • 2. CONTENTS1. UPS BARCODING AND TRACKING SYSTEM ............................................................ 3 1.1. Company Name ....................................................................................................................... 3 1.2. Related Porters Value Chain Activity ...................................................................................... 3 1.3. Description .............................................................................................................................. 3 1.4. References ............................................................................................................................... 42. DUNKIN’ DONUTS SMS ADVERTISING ..................................................................... 5 2.1. Company Name ....................................................................................................................... 5 2.2. Related Porters Value Chain Activity ...................................................................................... 5 2.3. Description .............................................................................................................................. 5 2.4. References ............................................................................................................................... 63. VIRGIN MEGASTORES’ UNIFIED COMMUNICATION SYSTEM ........................... 7 3.1. Company Name ....................................................................................................................... 7 3.2. Related Porters Value Chain Activity ...................................................................................... 7 3.3. Description .............................................................................................................................. 7 3.4. References ............................................................................................................................... 84. KENYA’S M-PESA: MOBILE MONEY TRANSFER SYSTEM ................................... 9 4.1. Company Name ....................................................................................................................... 9 4.2. Related Porters Value Chain Activity ...................................................................................... 9 4.3. Description .............................................................................................................................. 9 4.4. References ............................................................................................................................. 10 2
  • 3. 1. UPS BARCODING AND TRACKING SYSTEM1.1.Company NameUPS (United Parcel Service)1.2.Related Porters Value Chain ActivityPrimary Activity: Operations1.3.DescriptionUnited Parcel Service (UPS) began to its business from a small sized package distributionservice in 1907 with $100 in debt. And it has been taken more than 100 years to becomeworld’s largest package delivery company. Now, it reached to large amount of numbers that ismore than 15 million package deliveries at 24 hour to more than 6 million customers in morethan 220 countries and territories around the world [3]. The company has to compete with itsother competitors in the package delivery. So it has its advanced information technology tomake company more profitable and customers more grateful.UPS began its evolution with scanning barcode label system attached to package that includessender, destination, arrival time, etc information. So customers can follow their packages overinternet from web site of the UPS system that stores each packages with labeled informationand the current place of the packages. By updating package status and position informationwith barcode labeling, all distribution information can be collected and managed over acentralized system. It provides to distribute, deliver packages, or even determine mostefficient route for each driver by saving time and fuel with considering traffic and weatherconditions. Each UPS driver picks up a smart computer called Delivery InformationAcquision Device (DIAD), which has ability to connect and retrieve data from central system. 3
  • 4. And it provides drivers package tracking information and also drivers can stores the currentdelivery status of the packages from their computers. In addition, customers can reach to up-time package delivery information from Web to check their packages’ information.The company has many advantages by using this system such as 28 million miles deliverytrucks save or consuming 3 million less fuel for a year. The system has also facilities for UPSmanagers and customers tracking packages, checking delivery routes, and also timedetermination. So for UPS company managers, it is easy to reach to up-to-date all servicesinformation that adds a great ability to manage supply chain management, forecast, anddetermine customer royalty, so on.1.4.References [1] http://emlab.qust.edu.cn/userfiles/2009-3-8/file/UPS.pdf [2] http://compass.ups.com/supplychain/default.aspx [3] http://en.wikipedia.org/wiki/United_Parcel_Service 4
  • 5. 2. DUNKIN’ DONUTS SMS ADVERTISING2.1.Company NameDunkin’ Donuts2.2.Related Porters Value Chain ActivityPrimary Activity: Sales and Marketing2.3.DescriptionDunkin’ Donuts is an international coffee and donut seller company with 9 700 restaurants inthe 31 countries all over the world. It has more than half of all the locations in the US. Thecompany focuses on the baked goods, sandwiches, beverages and mostly coffee in thebusiness market with competitors Starbucks, Krispy Kreme and Tim Hortons, etc.The company tries several advertising methods to increase sales and market profit among thecompetitors. Dunkin’ Donuts also has advertising deals with many sports teams like BostonRed Sox and the New England Patriots. It has also sponsorship with many other professionalsports teams like New York Yankees, Dallas Cowboys, New York Mets, Tampa Bay Rays.The company has used SMS based advertising campaign in Italy. The advertising method isvery brief and cheaper to apply. Customers get coupons for the products from Dunkin’ Donutvia using their mobile phones with responding to campaign text messages from the company,billboard advertisements or radio advertisements. Customers get a special offer or free couponas a gift that can be used from stores, after sending text message with promotion code. Thereturn of the campaign resulted in about 9% increase in sales in the Rome branch stores with20% increase in overall sales, in the first three weeks period. 5
  • 6. About 82% of SMS responders came in to Dunkin’ Donuts stores and mostly in a 24 hourtime. So it brings more profit and effective advertising. Dunkin’ Donuts aims to reach to theircore customers by using SMS based marketing because lots of the SMS users are young andso most probable customers for the company. It shows us how a big market to advertise youroffers, when thinking of millions of mobile phone users.2.4.References [1] http://www.dunkindonuts.com/ [2] http://chiefmarketer.com/advertising/digital/dunkin-donuts-071906/ [3] http://en.wikipedia.org/wiki/Dunkin%27_Donuts 6
  • 7. 3. VIRGIN MEGASTORES’ UNIFIED COMMUNICATION SYSTEM3.1.Company NameVirgin Megastores3.2.Related Porters Value Chain ActivitySupport Activity: Firm Infrastructure3.3.DescriptionVirgin Megastore is an international company that sells books, CDs, DVDs, video games,magazines and clothing products It has hundreds of stores all over the world countries likeFrance, Germany, Greece, The Netherlands, Spain, US and even Turkey, etc. The companyhas to manage and operate its activities in an efficient manner to keep prices down, becausethe market has a competitive environment like Wal-Mart and other online music downloadcompanies.Virgin Megastores has more than 1400 employees from 11 retail stores in the US. Informationstored in the center office is shared with the retailers via e-mails, voice mails and audioconference calls to determine upcoming promotions, offers and events. The retailers generallyuse email messages to share information which is less effective and time consuming way ofcommunication when compared to interactive audio conference. The reason for less audioconference calling usage is that it costs much more money. So it causes to less effectivecommunication among the retailers and information exchange.To increase interaction between home office and the retailers, the company started to useMicrosoft’s Office Communication Server product in 2007. This technology contains 7
  • 8. integrated voice mail, email, instant messaging and conference calling. From the conferencingand collaboration tool, online employer’s availability can be checked, the usage of the systemcan be checked (the user is already using the phone or in a conference), or other capabilitiesare used like video conference with a camera or forwarding voice mails or emails toemployers.The company has saved 50 000$ for a year after using the Microsoft’s Tool. It decreasedconference call costs and provided more efficient information communication.3.4.References [1] http://www.virgin.com/company/virgin-megastore [2] http://download.microsoft.com/download/a/b/d/abdb3a6c-ea51-4c7c-86f5- d44d44cb9d66/VirginMegastores_UCVoice_Final.doc [3] http://www.cio.com/article/181550/How_to_Get_the_Most_From_Unified_Communicati ons, John Edwards, February 08, 2008. 8
  • 9. 4. KENYA’S M-PESA: MOBILE MONEY TRANSFER SYSTEM4.1.Company NameSafaricom (affiliate of Vodafone) in Kenya.4.2.Related Porters Value Chain ActivityPrimary Activity: Service4.3.DescriptionM-PESA is the Vodafone’s mobile phone based money transfer system. “M” and “PESA” arethe abbreviations of “mobile” and “Swahili (Kenya and Tanzania and commonly in east,central Africa) money”, respectively. The service was initially created in Kenya by theSafaricom, which is the leading cell phone company [2] in Kenya, in March 2007. M-PESAsystem allows users to deposit, send, withdraw money, transfer money to other users, and paybills by using their mobile phones. It is a banking system service that provides users to makemoney payment transactions without going to any bank branch. The system also allows usersto pay school fees, taxes and even salaries [3].Safaricom takes deposits from users who has Safaricom SIM card and also registered to the M-PESAsystem as a user. Registration step is too simple, not so hard as to open a bank account, only nationalId card or a passport is necessary to be registered. Each user account is stored on the system with e-money equivalent to real money. Depositing money is free for users, but to withdraw money, usershave to pay about $1 for a $100 transfer or cash.After Safaricom started the system in Kenya, in 2007, M-PESA has reached many usersquickly and get the top position in the mobile phone based financial service all over the 9
  • 10. developing world. The average number of new registrations to the system per day reached to5 000 to 10 000 users per a day. M-PESA has reached to nearly 7.7 million users [2] whohave been registered and have account, in August 2009 and makes more than 2 million dailytransactions in Kenya alone [4].Though the system is not developed to replace the banking system, it has caught a success ofthat takes place nearly half size of the average ATM (Automatic Teller Machine) transactions.So it reveals that M-PESA system has taken place in the market in which it contains customerbased financial services.4.4.References [1] http://www.vodacom.co.za/vodacom/services/M-PESA, 15th February 2011. [2] www.mit.edu/~tavneet/M-PESA.pdf, The Economics of M-PESA, William JACK, and Tavneet SURI, August, 2010. [3] http://www.somalipress.com/news/2011-feb-15/development-experts-ring-kenyas- mobile-money-success-story.html [4] http://en.wikipedia.org/wiki/M-Pesa [5] http://www.safaricom.co.ke/index.php?id=250 10

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