Value Chain Analysis: Literature Review and Application on Ikea

2782 Words Nov 19th, 2012 12 Pages
November 28, 2012
November 28, 2012
Aisling Lynch
C09687271

Aisling Lynch
C09687271

Stratgic management the value chain concept: literature review and application analysis on IKEA
Stratgic management the value chain concept: literature review and application analysis on IKEA

Contents

* Introduction * Origination * Porter’s Value Chain Concept * Linking of the Value Chain * Focus on External Sources * The Future - Conclusion * Ikea Example * References

Declaration

I, the undersigned, declare that this report is entirely my own written work, except where otherwise accredited, and that it has not been submitted for a degree or other award to any other university or institution.

Introduction

Since the 1980’s
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In this way not so important areas can be combined or ‘clustered’ (Johnson et al. 2005). Thus the firm can now see which areas of activities they should be concentrating their resources on; and which they should de-emphasis or outsource (Johnson et al. 2005). Often the categorization of activities relies on judgment (Kippenberger 1991).

Linking of the Value Chain

This system of mapping out and categorizing activities helps the firm to link its competencies to competitive advantage (Normann 1993). Relating your core competencies back to your resources is a successful way to gain competitive advantage (Lusch 2011); and participation of this is key to good strategy in a business (Normann 1993). Optimizing co-ordination between some activities may take place, as well as trade-offs between activities in order to achieve an overall more successful value result (Porter 1998).
Once activities have been clustered or isolated depending on their ‘higher order strategic themes’ (Porter 1998), the links between the different activities need to identified and analyzed in order to spot any potential competitive advantage sources that lie here (Kippenberger 1991). And so to, the notion of relationship and information management in the value chain arises in the different literature.
Emphasis needs to be placed on the relationships between all activities within the firm and with external

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