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Jawbone Value Chain

Decent Essays

Jawbone is a company founded by Hosain Rahman that specializes in portable audio products. It was only in the year 2011 did Jawbone venture into the wearable technology industry. As of 2014, Jawbone’s wearable technology line includes the Jawbone UP and Jawbone UP24.

In order to do a value chain analysis on the company, Jawbone, we must first know what a value chain is. A value chain, as defined by Michael Porter is “the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service”. In terms of Jawbone’s case, they have managed to create a successful and huge chain of ideas, research, activities, people and services that all contribute to the value chain. Through …show more content…

Jawbone managed to secure lucrative deals with top Chinese product suppliers, thus allowing Jawbone to create a direct supply line to mass produce their earpieces at a relatively low price. This has allowed them to establish successful Inbound Logistics for the company, thus they have created value in one of the primary activities in Porter’s Value Chain.

Moving on to Jawbone’s expansion to the wearable technology industry, Jawbone manage to play to their strengths. They used their competitive advantage with DARPA, allowing themselves to distribute a suitable number of units necessary to land them a decently sized share in the market. However, entering a new market meant there were a lot of challenges and problems Jawbone had to face.
It was not easy for an audio-specialized company to break into the health and fitness industry as they had lacked the necessary resources and required technology. This resulted in them failing in their attempt. However that does not change the fact that they were able to create a partnership with Motion X (the motion sensor technology which they used for their UP products) – even if the partnership was established only through their status from their brand in the technology industry, as well as secure a huge number of units for a product that they felt was functional and

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