Porters-Value-Chain-Analysis.pptx
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Porter's Value Chain Analysis is a tool used to analyze a firm's activities and identify which activities add the most value. It involves identifying primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as support activities like firm infrastructure, human resource management, technology development, and procurement. Conducting a value chain analysis can help firms gain cost advantages and competitive advantages to increase profitability.
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Porter's Value Chain Analysis
This presentation slide is about Porter's Value Chain Analysis. This upload consists of the following topics:
Basic Introduction
Porter's Value Chain Model
Primary Activities with real life example
Support Activities with real life example
1. Porter's Value Chain Analysis
Porter has a significant role defining the competitiveness factor in business environment. Porter's Five Forces Model and Porter's Value Chain Analysis are two major concepts in marketing and understanding business environment.
Porters-Value-Chain-Analysis.pptx.ppt
Porter's value chain analysis is a strategic tool used to analyze a firm's internal activities. It involves identifying primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as support activities like firm infrastructure, human resource management, technology development, and procurement. Michael Porter introduced the generic value chain model in 1985 to help companies understand how they can improve activities to increase margins and competitive advantage.
Value chain analysis
Value chain analysis identifies a firm's primary and support activities that add value to its products. The value chain contains primary activities like operations and logistics that directly create customer value, as well as support activities like procurement and infrastructure that facilitate the primary activities. Analyzing the value chain allows firms to reduce costs or increase differentiation by examining how each activity contributes to relative cost position or customer willingness to pay.
Techniques for org appraisal
The document discusses various techniques for analyzing an organization's performance, including value chain analysis, quantitative analysis using financial ratios and non-financial metrics, comparative analysis against historical performance, industry norms, and benchmarks, and comprehensive analysis using tools like key factor rating, organizational capability profiling, and the balanced scorecard. Value chain analysis segments a company's activities into primary and support activities to understand where value is created. The balanced scorecard integrates financial and non-financial metrics across four perspectives: financial, customer, internal business processes, and learning and growth.
Value Chain Analysis
This powerpoint presentation is meant for providing the basic knowledge and a case based on Value Chain Analysis.
Methods & techniques
An Organization Should Approach All Tasks With The Idea That They Can Be Accomplished In A Superior Fashion
An organization capability refers to the way systems and people in the organization work together to get things done. The way leaders foster shared mindsets, orchestrate talent, encourage speed of change, collaborate across boundaries, and learn and hold each other accountable define the company's culture and leadership edge.
The firm’s ability to manage people
to gain competitive advantage.
• focuses on internal processes and systems for meeting customer needs
• creates organization-specific competencies that provide competitive advantage since they are unique
• ensures that employee skills and efforts are directed toward achieving organizational goals and strategies
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
“ Value Chain Analysis (VCA) is a process where a firm identifies its primary and support activities that add to its final product and then analysis to reduce costs or increase differentiation.”
“ Value Chain represents the internal activities a firm engages in when transforming inputs into outputs.”
Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strengths and weaknesses that may influence the firms ability to achieve GOALS. It include identifying strengths and weaknesses.
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
A measurement of the quality
of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.
Value Chain and value system
Value chain and value system frameworks view firms as sets of activities used to create value and competitive advantage. [1] The value chain models a firm as a chain of value-creating activities including inbound logistics, operations, outbound logistics, marketing and sales, and service. [2] A value system includes a firm's value chain as well as those of its suppliers, distribution channels, and buyers. [3] It can extend beyond firm boundaries to evaluate linkages across the enterprise.
Recommended
Porter's Value Chain Analysis
This presentation slide is about Porter's Value Chain Analysis. This upload consists of the following topics:
Basic Introduction
Porter's Value Chain Model
Primary Activities with real life example
Support Activities with real life example
1. Porter's Value Chain Analysis
Porter has a significant role defining the competitiveness factor in business environment. Porter's Five Forces Model and Porter's Value Chain Analysis are two major concepts in marketing and understanding business environment.
Porters-Value-Chain-Analysis.pptx.ppt
Porter's value chain analysis is a strategic tool used to analyze a firm's internal activities. It involves identifying primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as support activities like firm infrastructure, human resource management, technology development, and procurement. Michael Porter introduced the generic value chain model in 1985 to help companies understand how they can improve activities to increase margins and competitive advantage.
Value chain analysis
Value chain analysis identifies a firm's primary and support activities that add value to its products. The value chain contains primary activities like operations and logistics that directly create customer value, as well as support activities like procurement and infrastructure that facilitate the primary activities. Analyzing the value chain allows firms to reduce costs or increase differentiation by examining how each activity contributes to relative cost position or customer willingness to pay.
Techniques for org appraisal
The document discusses various techniques for analyzing an organization's performance, including value chain analysis, quantitative analysis using financial ratios and non-financial metrics, comparative analysis against historical performance, industry norms, and benchmarks, and comprehensive analysis using tools like key factor rating, organizational capability profiling, and the balanced scorecard. Value chain analysis segments a company's activities into primary and support activities to understand where value is created. The balanced scorecard integrates financial and non-financial metrics across four perspectives: financial, customer, internal business processes, and learning and growth.
Value Chain Analysis
This powerpoint presentation is meant for providing the basic knowledge and a case based on Value Chain Analysis.
Methods & techniques
An Organization Should Approach All Tasks With The Idea That They Can Be Accomplished In A Superior Fashion
An organization capability refers to the way systems and people in the organization work together to get things done. The way leaders foster shared mindsets, orchestrate talent, encourage speed of change, collaborate across boundaries, and learn and hold each other accountable define the company's culture and leadership edge.
The firm’s ability to manage people
to gain competitive advantage.
• focuses on internal processes and systems for meeting customer needs
• creates organization-specific competencies that provide competitive advantage since they are unique
• ensures that employee skills and efforts are directed toward achieving organizational goals and strategies
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
“ Value Chain Analysis (VCA) is a process where a firm identifies its primary and support activities that add to its final product and then analysis to reduce costs or increase differentiation.”
“ Value Chain represents the internal activities a firm engages in when transforming inputs into outputs.”
Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strengths and weaknesses that may influence the firms ability to achieve GOALS. It include identifying strengths and weaknesses.
A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
OSHA standards are generally legally binding for an employer,
while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
A measurement of the quality
of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.
Value Chain and value system
Value chain and value system frameworks view firms as sets of activities used to create value and competitive advantage. [1] The value chain models a firm as a chain of value-creating activities including inbound logistics, operations, outbound logistics, marketing and sales, and service. [2] A value system includes a firm's value chain as well as those of its suppliers, distribution channels, and buyers. [3] It can extend beyond firm boundaries to evaluate linkages across the enterprise.
value chain analysis.pdf
Value chain analysis identifies a firm's primary and support activities that add value to its products or services. The value chain depicts the internal activities involved in transforming inputs into outputs. It contains primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and service, as well as support activities like procurement, technology development, human resource management, and firm infrastructure. Conducting a value chain analysis allows a firm to examine how each activity contributes to relative costs or customer willingness to pay to identify sources of competitive advantage.
Value chain analysis
Value chain analysis describes how a business is divided into primary and support activities and how these activities contribute to competitive advantage. Primary activities directly involve creating and delivering a product or service, like operations, marketing, and service. Support activities enable primary activities, such as procurement, human resources, and technology development. Michael Porter's model provides a framework to analyze each activity and determine how to focus on those providing the most value. The value chain has evolved as more businesses adopt service models rather than manufacturing.
Value chain analysis
Value chain analysis describes how a business is divided into primary and support activities and how these activities contribute to competitive advantage. Primary activities directly involve creating and delivering a product or service, like operations, marketing, and service. Support activities indirectly support primary activities, like procurement, human resources, and technology development. Michael Porter's model of value chain analysis provides a framework to examine how each activity creates value and where a business has competitive advantages or disadvantages.
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This document discusses value chain analysis, which was first proposed by Michael Porter in 1985. It involves identifying a firm's primary and support activities that add value to its products or services and analyzing them to reduce costs or increase differentiation. The key stages of value chain analysis for strategic cost management are identifying activities, establishing their costs and importance, comparing costs, identifying cost drivers, and finding opportunities to reduce costs or improve value through internal and external linkages. This allows firms to assess their competitive positioning and strategically improve quality, reduce time and costs, and increase benefits for both the firm and partners in the value chain.
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The document discusses assessing a firm's internal environment, including conducting SWOT and value chain analyses to evaluate strengths, weaknesses, and competitive advantages. It describes the primary and support activities in a value chain, such as inbound logistics, operations, outbound logistics, marketing and sales, service, technology development, and general administration. The document also covers assessing a firm's tangible, intangible, and organizational resources based on whether they are valuable, rare, difficult to imitate or substitute. Financial ratio analysis and stakeholder interests are mentioned as additional factors for internal assessment.
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Value Chain Analysis is a strategy used to analyze the company's internal activities. In other words, by looking at internal activities, the analysis reveals where a company's competitive advantage or deficiencies are.
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Here you can understand the value analysis ( Supportive activities and Primary activities ) and organizational appraisal.
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A value chain consists of primary and support activities that a firm performs to deliver value to customers. Primary activities directly involve creating, selling, and supporting a product or service. Support activities enable the primary activities. Michael Porter popularized the value chain concept in 1985 as a way to analyze how a firm's activities can be improved to increase competitive advantage. Analyzing a firm's value chain involves identifying its activities and sub-activities, and finding ways to enhance value at each step.
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The document discusses value chain analysis and the internal environment of an organization. It defines value chain analysis as describing the primary and support activities of a business and how they relate to competitive strength. Primary activities directly involve creating and delivering a product or service, while support activities increase effectiveness and efficiency. Value chain analysis can identify which activities a business should undertake itself and which it should outsource. The internal environment consists of an organization's resources and capabilities in the form of its value chain. It involves identifying competencies and competitive advantages.
CHAPTER 3Assessing the Internal Environment of the FirmCopyr
CHAPTER 3
Assessing the Internal Environment of the Firm
Copyright Anatoli Styf/Shutterstock
1
Learning Objectives
After reading this chapter, you should have a good understanding of:
3-1 The primary and support activities of a firm’s value chain.
3-2 How value-chain analysis can help managers create value by investigating relationships among activities within the firm and between the firm and its customers and suppliers.
3-3 The resource-based view of the firm and the different types of tangible and intangible resources, as well as organizational capabilities.
3-4 The four criteria that a firm’s resources must possess to maintain a sustainable advantage and how value created can be appropriated by employees and managers.
3-5 The usefulness of financial ratio analysis, its inherent limitations, and how to make meaningful comparisons of performance across firms.
3-6 The value of the “balanced scorecard” in recognizing how the interests of a variety of stakeholders can be interrelated.
©McGraw-Hill Education.
2
The Importance of the Internal Environment
Consider. . .
Which activities must a firm effectively manage and integrate in order to attain competitive advantages in the marketplace?
Which resources and capabilities must a firm create and nurture in order to sustain a competitive advantage?
©McGraw-Hill Education.
What if two firms compete in the same industry and both have many strengths in a variety of functional areas: marketing, operations, logistics, etc.? However, one of these firms outperforms the other by a wide margin over a long period of time. How can this be? The value-creating activities that the firm manages well, and the bundles of resources and capabilities that the firm has created and nurtured over time are crucial to answering these questions.
3
Value-Chain Analysis
Value-chain analysis looks at the sequential process of value-creating activities.
Value is the amount buyers are willing to pay for what a firm provides.
How is value created within the organization?
How is value created for other organizations in the overall supply chain or distribution channel?
The value received must exceed the costs of production.
©McGraw-Hill Education.
SWOT is a good starting point, but it doesn’t give enough guidance regarding the specific action steps needed to enact strategic change. For instance, a firm may have a capability that is a strength, but that, by itself, cannot create or sustain competitive advantage. It’s too easy to become preoccupied with a single dimension or element of what is, essentially, a moving target…MORE analysis may be necessary, which is where the value chain comes in. Value-chain analysis = a strategic analysis of an organization that uses value-creating activities. Value is the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue, a reflection of the price a firm’s product commands, and the quantity it can sell. A firm is profitabl ...
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the value chain analysis
The document discusses value chain analysis. It defines a value chain as the series of activities that create and build value at every step within a company. A value chain consists of primary activities like operations, distribution, and sales, as well as support activities such as research and development and human resources. Value chains can be categorized as manufacturing-based, service-based, or a combination of both. Conducting value chain analysis helps companies identify which activities add the most value and how to improve competitive advantage.
Porter's Value Chain Presentation 1
Porter's Value Chain model analyzes a firm's activities and how they create value. It identifies primary activities like operations, marketing, and service, and support activities like procurement, technology development, and human resources. Porter argued that by excelling in value chain activities through cost advantages, firms can achieve competitive advantage. Cost advantages come from reducing individual activity costs or reconfiguring the entire value chain.
Value Chains And Adding Value
The document discusses the value chain concept introduced by Michael Porter, which categorizes a firm's activities as either primary or support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities include procurement, technology development, human resource management, and general administration. Together, a firm's activities and resources can provide competitive advantages if they add value for customers.
CSCM Chapter 3 strategic procurement and value chain cscm
Strategic procurement aims to facilitate added value across the entire value chain, not just reduce costs. A value chain displays the total value created by a firm through its unique activities and margins. Porter's value chain model divides activities into primary and support activities. Primary activities directly relate to product creation and support, while support activities underpin primary activities through functions like procurement, HR and infrastructure. Firms gain competitive advantage by configuring activities to create more value for customers than competitors.
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Value chain analysis identifies a firm's primary and support activities that add value to its products or services. The value chain depicts the internal activities involved in transforming inputs into outputs. It contains primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and service, as well as support activities like procurement, technology development, human resource management, and firm infrastructure. Conducting a value chain analysis allows a firm to examine how each activity contributes to relative costs or customer willingness to pay to identify sources of competitive advantage.
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Value chain analysis describes how a business is divided into primary and support activities and how these activities contribute to competitive advantage. Primary activities directly involve creating and delivering a product or service, like operations, marketing, and service. Support activities enable primary activities, such as procurement, human resources, and technology development. Michael Porter's model provides a framework to analyze each activity and determine how to focus on those providing the most value. The value chain has evolved as more businesses adopt service models rather than manufacturing.
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The document discusses assessing a firm's internal environment, including conducting SWOT and value chain analyses to evaluate strengths, weaknesses, and competitive advantages. It describes the primary and support activities in a value chain, such as inbound logistics, operations, outbound logistics, marketing and sales, service, technology development, and general administration. The document also covers assessing a firm's tangible, intangible, and organizational resources based on whether they are valuable, rare, difficult to imitate or substitute. Financial ratio analysis and stakeholder interests are mentioned as additional factors for internal assessment.
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Value Chain Analysis is a strategy used to analyze the company's internal activities. In other words, by looking at internal activities, the analysis reveals where a company's competitive advantage or deficiencies are.
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Here you can understand the value analysis ( Supportive activities and Primary activities ) and organizational appraisal.
Value Chain Analysis using Porter's Model
A value chain consists of primary and support activities that a firm performs to deliver value to customers. Primary activities directly involve creating, selling, and supporting a product or service. Support activities enable the primary activities. Michael Porter popularized the value chain concept in 1985 as a way to analyze how a firm's activities can be improved to increase competitive advantage. Analyzing a firm's value chain involves identifying its activities and sub-activities, and finding ways to enhance value at each step.
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The document discusses value chain analysis and the internal environment of an organization. It defines value chain analysis as describing the primary and support activities of a business and how they relate to competitive strength. Primary activities directly involve creating and delivering a product or service, while support activities increase effectiveness and efficiency. Value chain analysis can identify which activities a business should undertake itself and which it should outsource. The internal environment consists of an organization's resources and capabilities in the form of its value chain. It involves identifying competencies and competitive advantages.
CHAPTER 3Assessing the Internal Environment of the FirmCopyr
CHAPTER 3
Assessing the Internal Environment of the Firm
Copyright Anatoli Styf/Shutterstock
1
Learning Objectives
After reading this chapter, you should have a good understanding of:
3-1 The primary and support activities of a firm’s value chain.
3-2 How value-chain analysis can help managers create value by investigating relationships among activities within the firm and between the firm and its customers and suppliers.
3-3 The resource-based view of the firm and the different types of tangible and intangible resources, as well as organizational capabilities.
3-4 The four criteria that a firm’s resources must possess to maintain a sustainable advantage and how value created can be appropriated by employees and managers.
3-5 The usefulness of financial ratio analysis, its inherent limitations, and how to make meaningful comparisons of performance across firms.
3-6 The value of the “balanced scorecard” in recognizing how the interests of a variety of stakeholders can be interrelated.
©McGraw-Hill Education.
2
The Importance of the Internal Environment
Consider. . .
Which activities must a firm effectively manage and integrate in order to attain competitive advantages in the marketplace?
Which resources and capabilities must a firm create and nurture in order to sustain a competitive advantage?
©McGraw-Hill Education.
What if two firms compete in the same industry and both have many strengths in a variety of functional areas: marketing, operations, logistics, etc.? However, one of these firms outperforms the other by a wide margin over a long period of time. How can this be? The value-creating activities that the firm manages well, and the bundles of resources and capabilities that the firm has created and nurtured over time are crucial to answering these questions.
3
Value-Chain Analysis
Value-chain analysis looks at the sequential process of value-creating activities.
Value is the amount buyers are willing to pay for what a firm provides.
How is value created within the organization?
How is value created for other organizations in the overall supply chain or distribution channel?
The value received must exceed the costs of production.
©McGraw-Hill Education.
SWOT is a good starting point, but it doesn’t give enough guidance regarding the specific action steps needed to enact strategic change. For instance, a firm may have a capability that is a strength, but that, by itself, cannot create or sustain competitive advantage. It’s too easy to become preoccupied with a single dimension or element of what is, essentially, a moving target…MORE analysis may be necessary, which is where the value chain comes in. Value-chain analysis = a strategic analysis of an organization that uses value-creating activities. Value is the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue, a reflection of the price a firm’s product commands, and the quantity it can sell. A firm is profitabl ...
marketing_strategies_plans.
This document discusses marketing strategies and the value chain. It begins by explaining that companies now focus on fine-tuning the value delivery process to provide superior customer value. It then defines the value chain as identifying nine primary and support activities that create customer value. The document proceeds to describe each of the nine activities in detail. It concludes by discussing using the value chain to improve costs and performance, gain competitive advantages, and coordinate activities through strategic planning tools like the BCG matrix.
PMM PPT.pptx
This document discusses Porter's value chain model, which breaks down a company's activities into primary and support activities. The primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities involve procurement, technology development, human resource management, and firm infrastructure. The value chain model helps analyze where true value is created within a company and which areas need improvement.
Unit-3 VALUE CHAIN OF FOREST PRODUCTS BASED ENTERPRISES.pptx
The value chain approach examines all activities involved in bringing a product from conception to end markets. It identifies participants at each stage and their strengths/weaknesses. For forest enterprises, value chain analysis helps add value, identify problems, improve quality and market access, reduce costs, strengthen linkages among actors, and inform policy/decision making. It provides insights to develop strategies that increase benefits for all stakeholders in the chain.
the value chain analysis
The document discusses value chain analysis. It defines a value chain as the series of activities that create and build value at every step within a company. A value chain consists of primary activities like operations, distribution, and sales, as well as support activities such as research and development and human resources. Value chains can be categorized as manufacturing-based, service-based, or a combination of both. Conducting value chain analysis helps companies identify which activities add the most value and how to improve competitive advantage.
Porter's Value Chain Presentation 1
Porter's Value Chain model analyzes a firm's activities and how they create value. It identifies primary activities like operations, marketing, and service, and support activities like procurement, technology development, and human resources. Porter argued that by excelling in value chain activities through cost advantages, firms can achieve competitive advantage. Cost advantages come from reducing individual activity costs or reconfiguring the entire value chain.
Value Chains And Adding Value
The document discusses the value chain concept introduced by Michael Porter, which categorizes a firm's activities as either primary or support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities include procurement, technology development, human resource management, and general administration. Together, a firm's activities and resources can provide competitive advantages if they add value for customers.
CSCM Chapter 3 strategic procurement and value chain cscm
Strategic procurement aims to facilitate added value across the entire value chain, not just reduce costs. A value chain displays the total value created by a firm through its unique activities and margins. Porter's value chain model divides activities into primary and support activities. Primary activities directly relate to product creation and support, while support activities underpin primary activities through functions like procurement, HR and infrastructure. Firms gain competitive advantage by configuring activities to create more value for customers than competitors.
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The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
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-- June 2024 is National Volunteer Month --
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Porters-Value-Chain-Analysis.pptx
- 1. Porter’s Value Chain Analysis
- 2. Introduction ❑ Value chain represents the internal activities a firm engages in when transforming inputs into outputs. ❑ Value Chain Analysis (VCA) is a strategy tool used to analyze firm’s activities by recognizing which activities are the valuable to the firm and which ones needs to be improved. ❑ It involves identification of primary and supportive activities that add value to the final product. ❑ Michael Porter introduced Generic Value Chain Model in 1985.
- 3. Porter’s Value Chain Analysis Firm Infrastructure (Financing, Planning, Investor Relation, Organizational Structure) Human Resource Management (Recruiting, Training, Compensating, Grievance handling) Technology Development (Product Design, Testing Facility, Market Research, Enterprise Resource Planning) Procurement Resources (Components, Machinery, Vendor, Advertisement, Services) Inbound Logistic Receiving Data Storing Inventory Control Transportation Scheduling Operations Manufacturing Assembly Testing Daily Operation Outbound Logistic Warehousing Order Fulfilment Dispatch Transportation Marketing And Sales Advertisement Selling Promotion Pricing Service Customer Service Upgrading Training M A R G I N S U P P O R T P R I M A R Y www.noteslearning.com
- 4. Primary Activities ▪ Inbound Logistics – Raw Material Handling and Warehousing ▪ Operations – Transforming Inputs into the Final Products ▪ Outbound Logistics – Warehousing and Distribution of Finished Goods ▪ Marketing & Sales – Communication, Pricing and Channel Management ▪ Services – Installation, Repair and After-Sales Support Primary activities are directly involved in transforming inputs into outputs and in delivery and after sales support.
- 5. Value Chain of LLOYD AC. PRIMARY ACTIVITIES Inbound Logistics Operations Outbound Logistics Marketing and Sales Services & Support Manufacturing of A.C. into a finished product Transporting A.C.to Distributors and Wholesalers Purchase of Raw Material & Components ▪ Installation ▪ Repair ▪ After Sales Servicing ▪ Segmentation ▪ Targeting ▪ Branding ▪ Pricing ▪ Advertising ▪ Promotional Offers
- 6. Porter’s Value Chain Analysis Firm Infrastructure (Financing, Planning, Investor Relation, Organizational Structure) Human Resource Management (Recruiting, Training, Compensating, Grievance handling) Technology Development (Product Design, Testing Facility, Market Research, Enterprise Resource Planning) Procurement Resources (Components, Machinery, Vendor, Advertisement, Services) Inbound Logistic Receiving Data Storing Inventory Control Transportation Scheduling Operations Manufacturing Assembly Testing Daily Operation Outbound Logistic Warehousing Order Fulfilment Dispatch Transportation Marketing And Sales Advertisement Selling Promotion Pricing Service Customer Service Upgrading Training M A R G I N S U P P O R T P R I M A R Y
- 7. Support Activities ● Firm Infrastructure refers to an organization’s structure and its management, functions, planning, accounting, finance, quality-control mechanism. Firms infrastructure can be a powerful factor for competitive advantage. ● Procurement Resources refers to the function of purchasing inputs used in the firm’s value chain. This function adds value to the company by employing required inputs and effectively managing the firm’s cost.
- 8. Support Activities ● Technology Development incorporates a wide range of technology-related activities to improve the product and the process. Technology development plays a prominent role in differentiating and having competitive advantage ● Human Resource Management consists of activities involved in recruitment, hiring, training, development, compensation of all type of human manpower. It supports both the primary activities and the entire value chain.
- 9. ● Cost Advantage ● Competitive Advantage ● Profitability Need for Value Chain Analysis Value Chain Competitive Advantage Higher Profitability
- 10. ● Firm Infrastructure ○ 800 plants over 200 countries and territories ○ Market Capitalization: $235.35 Billion ○ Advertisement : $5.8 Billion ○ Largest Distribution Network ● Procurement Resources ○ Coca-Cola Bottlers’ Sales and Service ■ Customer Business Solution : a data and service integrator of/for stakeholders ■ Procurement: Navigate external marketplace channels and categories and supplier insights to solve client needs. Support Activities: The Coca-Cola Company
- 11. ● Technology Development ○ Product Innovation: Sugar free products, Greener packaging ○ Sustainable Innovation: “Zero-Waste Urban Environment” ○ Marketing Innovation: Digital Platform and Big Data Analysis for accessing customers choice and forming strategies accordingly. ● Human Resource Management ○ Payments and Rewards ○ Employee Engagement Programs ○ Trainings and Education ○ Performance management Support Activities: The Coca-Cola Company
- 12. Thank You !!!