Critically Examine How a ‘Sector Matrix’ Framework Is Useful for Analysing Demand and Supply Linkages

When comparing supply and demand on different types of products there are a few things that are looked at. Price is something that can cause the demand on one good to change to a demand on another. For example when I was looking at different laptops the price ranges for laptops were anywhere from $300 to up and over a $1000 depending. Some are even more. Automatically I knew my budget and knew anything over $500 was out; therefore dropping the demand on the more expensive ones while increasing the demand on the lower priced items. This is pretty much how I

The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)

In order to conduct internal analysis of John Lewis Partnership, value chain analysis appears to be the most useful, it was used by Michael porter (1985). It is used to analyse activities performed by the business. It helps to maximise value

“Competitive Advantage introduces the concept of the value chain, a general Framework for thinking strategically about the activities involved in any business and assessing their relative cost and role in differentiation”. Michael Porter, (1985).

A value chain analysis is a strategic analysis of an organization that uses value creating activities (Dess, McNamara, & Eisner, 2016, p. 76). The value chain analysis describes a company’s activities and relates them to an analysis of the competitive strength of the company

A company’s success in developing and sustaining its competitive advantage does not depend on its own value chain but on its ability to manage the value system on which it is a part. An example would be an automobile manufacturer that may have its suppliers set up facilities in close proximity in order to minimize transport costs and reduce parts inventories.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

According to Michael Porter’s concept about value chain, “activities within the business companies add value to the product and service that the business organization or companies produces”. The idea of the value chain is based on the process view of organization, the idea of seeing a manufacturing firm as a system, made up of subsystems each with inputs transformation process and output. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

The basic principle in defining the value chain, according to Michael Porter (Porter, 1985), is that the activities include a variety of disaggregations from the below three perspectives. First, they have different economics, implying that these activities are functioning in different segments of the market. Second, even though the economics differentiation is not that evident, isolated activities should have a potential impact for it. Third, value-adding activities have significant input scale.

Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in

The industry value chain is the process from the suppliers of the raw material to the end customers who demand the service of transportation.

According to Walters & Rainbird (2007), companies create additional value for their customers by building value chains that identify, produce, deliver, and service customer needs (p. 164). Michael Porter identified the value chain concept in his 1985 book “Competitive Advantage” (Manktelow, n.d.). He proposed a general-purpose value chain that companies can use to analyze their activities and see how they connect. The chain is comprised of five primary activities: Inbound logistics, Operations, Outbound logistics, Marketing and sales, and Service.

The value chain is understood as a series of activities linked vertically to create and increase value for our customers (Leiponen and Helfat, 2009). Understanding these issues is important because the firm earn above-average returns only when the value it creates is greater than the cost incurred to create that value (Kasper, Mühlbacher and Müller, 2008). Today’s competitive landscape demands that firms examine their value chains in a global rather than a domestic-only context (Haworth, 2013). When using their unique core competencies to create unique value for customers that competitors cannot duplicate, firms have established one or more competitive advantages (Saliola and Zanfei, 2009). Competitive Advantages (strengths) of the business comes from many separate activities in the design, manufacture, marketing, distribution, so on. Each of these activities contributes to reduce the relative cost of enterprise or create a basis differentiation, thereby can creating competitive advantages for

The value chain analysis (shown in appendix) was also generated by Michael Porter. This model is referred to “identifying ways to increase the efficiency of the chain” (Investopedia, n.d.). Furthermore, the overall objective is to produce maximum value with minimum total cost and establish a competitive advantage.