Product Features Of Value Chain Essay

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.

“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.

In your analysis of the organization’s strengths, be sure to identify the firm’s Core Competencies using the Value Chain.

Identifying the primary and secondary components of a value chain helps balance the activities that a company performs internally to create value for the buyers. A value chain is made up of primary and secondary activities. Primary activities relate directly to the physical creation, sale,maintenance, and support of a product or service. Primary activities consist of supply chain management, operations, distribution, sales and marketing, and service, as seen in figure 4.1, (Gamble, Peteraf, Thompson, 78). Secondary activities support the primary activities. Secondary activities consist of product research and development, technology, system development, human resource management, and general administration. Chipotle uses a value chain to lead their company to success while providing quality ingredients and service to their customers.

“The value chain identifies where the value is added in an organization and links the process with the main functional

Recommendation 1: Implement a functional structure aligned the value chain. A key recommendation of this report is for a new functional structure to be introduced that is aligned to the where value is created in the

According to Michael Porter business activities could be grouped into Primary Activities which are activities that are directly concerned with creating and delivering products and also Support Activities which are not directly involved in production, but they are activities that increase effectiveness or efficiency. It is rare for a business to undertake all primary and support activities.

In book Competitive Advantage of Michael Porter, he introduced the idea of generic value chain model in 1985. The value chain comprises a sequences of internal activities that a company performs “to design, produce, market, deliver and support (after-sale services) the product.” Value chain activities consist of (1) primary activities are directly involved in adding value through transforming raw input to output, delivering and offering after-sale services on the final product and (2)support activities are internal company function that support primary activities and indirectly add value to the products. By looking into both activities, the company can identify their competitive advantage and disadvantage. For instance, if the company is able to perform its activities at lower cost than competitors, it has a cost

In value chain analysis we can broke down most critical processes value generating activities for more detailed analysis of what our business is trying to achieve and how it is currently operating so that we can achieve a greater harmony in oor accounting process. That opens the opportunity for focused process improvement in our organization on the areas of constraint which offer most return and add value to our

A value chain may be defined as the chain of activities that firms operating in specific industries, such as the healthcare industry, perform in order for them to deliver valuable service or product for its consumers. The value chain concept comes from management of business and it was first described by Michael Porter in the year 1985 in his book “competitive advantage.” The main idea of value chain may be based on a process view of an organization, the idea to see an organization as a system that is made up of different subsystems that have inputs, different transformation processes, and outputs. Some of the factors within the chain include money, materials labor, equipment land, administration, management, and building. How the value chain is managed, including the above factors, determined the effects on profits and costs. The supply chain may be used for the success of any organization through the subdivision of an organization’s functionality. The division ensures that there is easier management of human assets and resources. An example of a health care value chain is the flow from inbound logistics to operations to outbound logistic to marketing and sale and finally to provision of services and consumption of products.

The definition of value chain could be rephrased as, a process that is used to re-engineer or to improve an existing product and/or service so as to add more meaning and value to those products and/or services, which would eventually lead to satisfied customers and also helps a company

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.