Value Chain Essay

1. A value chain is the sequence of activities that begins with raw materials. What result does a value chain end with? Delivery of products or services

Personally, I thought value chain was interesting in that it helps the business create a stronger competitive advantage (Bethel, 2016). If we think about the services we receive, we can see where some organizations are focusing on value added services or products. For example, Chick-fil-a offers premium customer service. In fact, I do not believe

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

Costco is among the leading global retailers which provide customers a wide range of merchandise, ranging from small to well-known brands. The company began operations in 1983. Over the years, Costco has been a retailer in low cost membership-only leader, in warehouse club of merchandise. Moreover, Costco does not offer frills warehouse business models as its competitors do.  Costco’s major competitors are BJ’s Wholesale Club and Sam Club (Costco, 2010).

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.

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)

For supporting activities, Porter’s Value Chain includes four aspects that contribute to the internal analysis of the company. Procurement, otherwise known as purchasing, includes sourcing raw materials from wholesalers and suppliers, with whom we have long-term strategic relationships. We also source recycled material to create biodegradable containers and spray bottles, as a part of our commitment to the environment. Human resource management consists of a high level of commitment to ethical and diverse hiring practices, effective staff training and cross-training programs to allow for internal growth. It is imperative that HR practices are developed with consideration for the organization’s strategic goals, especially because it has the ability increase our success in attracting and retaining talent that may help us succeed.

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.

Value Chain Management: Development of a set of functional-level strategies that increase the performance of the operating system a company uses to transform inputs into finished goods and services. (George and Jones, 2006:267)

A value chain is nothing but a set of activities that a firm operates to deliver a much valuable and quality product or services in the market. The term comes from Business management and was firstly coined by Mr. Michael Porter in his best seller.

Within technology and the value system, this called for an emphasis on media relations to disseminate information to the local community and its leaders. Solid communication practices, i.e. strategic communications, was of the utmost importance to gain the respect and acceptance of the population.

Value Chain Analysis describes the activities that take place in a business and related to the business core competencies. It can classify by primary activities and supporting activities.