Google 's Value Chain Model

The term value chain refers to the idea that all of the functions of a company, including production, marketing, product development, service,

In order for a firm to create competitive advantage, it needs to create a set of activites that can deliver value to the specific product and services it offers to its customers. To start talking about my life as a “value chain”, I may need to compare it to a specific product”. This is going to take precedence both in my personal life and professional life.

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)

Value chain is a set of activities a company performs in order to provide a valuable solution to their customer problem in their market space or industry. The value chain is made up of primary and support activities. Primary activities being research and development, production, marketing and sales and customer service. These are the primary steps that are required to get a product or service to market to solve the customer problems. Some of the secondary steps include company

“A value chain is a set of activities that an organization carries out to create value for its customers. Porter proposed a general-purpose value chain that companies can use to examine all of their activities, and see how they 're connected. The way in which value chain activities are performed determines costs and affects profits, so this tool can help you understand the sources of value for your organization.” (https://www.mindtools.com/pages/article/newSTR_66.htm) With this in mind, we will be taking a look at Tesla Motors.

Steve Denning (2011), states that customer delight is the firm’s new bottom line and delighting the customer from outsets to outcomes. By focusing on delighting the customer the firm makes a lot more money than they would if they set out to make money. Delighting the customers make a lot of money. Customer delight = providing a continuous stream of additional value to customers and delivering it sooner. It is measurable and means a different way of running the company.

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.

Keane (2008) stated to design, manufacture, promote, offer and facilitate its product or services, all organization engages in some activities. All of these activities of an organization are shown through the use of value chain process. The manner in which organization performs its varying activities along with the firm’s value chain mirrors the organization’s background, strategy along with the way in which the organization executes its strategy. Ponte (2008) stated that the analysis of value chain of an organization is used to develop the organization’s competitive strategies along with formulation the connected and interconnectedness between all the organizational activities that formulate value. Francis, Simons, and Bourlakis (2008) stated that value chain analysis is a helpful tool as an organization looks to attain competitive advantage. Furthermore, Rieple and Singh (2010) stated that a value chain is a useful tool in conceptualizing the varying activities

Google, Apple, Facebook and each have different business models. Each company focuses on different things that makes them unique and stand out to their customers.

Mark Hachman specifically talks about Google’s advertising strategies. Hachman is a senior editor at PCWorld, a global computer magazine. In Hachman’s view, Google has launched a new app named Dubbed Customer Match that is linked with Gmail. It means the consumer’s email address and profile are directly connect to Dubbed Customer Match. This enables Google to sell consumer data to different advertising companies. For example, if a user asks any website to send information to his/her Gmail address, that site can automatically enroll into Dubbed Customer Match. Ultimately, it allows them to send different coupons or promotional code (a series of letters or numbers that allow a user to get a discount on something) for a user based

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

Value chain was first crafted by Michael Porter in his book “Competitive Advantage Creating and Sustaining Superior Performance” (1985), to illustrate how customer value accumulates along a chain of activities that lead to an end product or service.

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)

Value chain is an approach to know how an item or activities create value for consumers. The most of value provides to consumers, the most of competitive advantage an organization build. In this analysis, value chain model has separated into primary and support activities. Primary activities are included in the physical creation of the item and service. On the other hand, support activities give the inputs and infrastructure that enable the primary activities to happen. This value chain model can be refer to below figure 5.

The business world today is a competitive one. All the companies are trying their best to get ahead in the game. Because that is how they will improve and be the best at what they do. To achieve this the companies have to constantly strive hard and try to be ahead of their competitors or at least in step with them. This is where value chain comes in. Value chain deals with adding value to your product so that the company might gain a competitive edge over their rivals.