Porter Value Chain Analysis

Since the organization’s deliverables are service related, Society Consulting creates value based on the projects that the organization completes for its clients. Not just completing project deliverables can be used to measure the customer’s satisfaction, but can also be used to increase the business generated by the customer by creating additional opportunities. When looking at the business value chain, the each one of the activities can be tied to the steps taken within a project. This paper was created comparing each primary and secondary activity using Porter’s Value Chain (1), with each activity being associated with activities currently performed in Society Consulting. Here are how each one of the activities consist of:

One of Porter’s main contributions was Porter’s value chain. The value chain is all the activities an organization undertakes to create value for a customer. According to Porter, there are two ways to gain an edge over competitors. A firm must provide comparable but value but perform the activities on the chain at a lower cost, or; Perform services in a unique way

Effective value chain as a competitive advantage can contribute significantly to the prosperity of a firm in the competitive arena, but it can cause dire situations if not operated properly (Guy, 2011). However, there are conflicts among companies as to how stakeholders think they gain competitive advantage. Porter (1996) suggests: A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at lower cost or do both.

Porter started a movement to create integrated business systems by describing value chains and their ___

Internally, employees will be able to keep track of various vendors who have a proven track record of discounts, reliable shipping and product innovation.

2) (15 points) Porter 's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. [5 points] Describe Porter 's Five Forces Model. [5 points] Use “Carrefour Supermarket” as an example to explain each of the five forces. [5 points ] What is meant by the "value chain"? How does it apply to information systems?

In order to analyse the various types of activities which would help in the creation of competitive advantage he use of Porter’s Value Chain Analysis are done. The value chain analysis will help in order to perform two main activities such as primary & support activities. The primary activities in the value chain analysis takes into consideration inbound and outbound logistics, marketing and sales & after sales service. Whereas the support activities takes into consideration, procurement of raw materials, use of up to date technology, infrastructure of the firm & managing the resources. Both the activities in the value chain analysis are interlinked to one another. It shall be taken into consideration that, technology has been referred to

Michael Porters (1998) value chain model addresses activities that create, deliver and support a company’s product or service and thus its overall position and competitive strength in the market for global competition shown in Fig. 1.

In order to determine the advantages of TMF in the competitive environment, Michael Porter’s value chain is used. Porter states that this competitive advantage can be obtained by lowering the production costs and add value to the products or services. The chain is divided into primary and support activities. The primary activities add value directly to the organisation, where the support activities can add value indirectly to the company (Mind Tools, n.d.).

According to Porter and Miller (1985:150), the concept of the value chain 'divides a company 's activities into the technologically and

Michael Porter established a theoretical framework for enterprise application in industries which analyzed the processes and activities that create value in the organization and dynamics with your competition and market. However, the formulation of the Porter value chain was limited to vertical view of organizations, making rigid implementation in non-industrial or horizontal integration features flexible

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.

The value chain shows the internal steps a company or organization takes to transform inputs into outputs (Jurevicius, 2013). As the products pass through each stage or activity, value is added until they ultimately are ready to reach the consumer. Value chain analysis a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation (Jurevicius, 2013). The use of value chain analysis differs from small companies to large corporations. Ultimately, value chains are examined to increase performance of the company, whether it be with respect to cost, or productivity.

Many organizations do not achieve the profits they anticipate by using incorrect methods or models to determine the true costs of products and services. This failure to correctly assess the costs associated with business not only affects the profit margin, but the organizations competitive advantage as well. In order to asses whether the organization is failing to realize optimum resource allocation, the organization should look at the methodology first popularized by Michael Porter titled the Value Chain Analysis (VCA). "VCA seeks to define the entire chain through which goods are supplied to a customer" (Booth, 1997, 2). The VCA can be a powerful tool in increasing an organization's competitive advantage; by

The work of Porter is significant in the emphasis of the business process. He says value chain is a comprehensive collection of all the activities that are performed to design, produce, and market, deliver, and support a product line (Porter, 1985). When we combine the concept of the value chain and system to the organization we understand that organizations span across functional departments like finance, marketing, sales, and support etc.