Value Chain And D&S Agency. Whether Selling A Product Or

1361 WordsMar 5, 20176 Pages
Value Chain and D&S Agency Whether selling a product or producing a service, companies have to find and establish a set of competitive advantages (Gertner, 2013). These advantages should be advantageous to the customer and also be sustainable to the company (Gertner, 2013). The value chain is a tool that companies can use to analyze the steps they need to take to provide the highest level of service to its customers and create a competitive advantage (Blocher, Stout, Juras, & Cokins, 2016). The value chain analysis tool can be taken to the next level when companies utilize it to help them assess where they can reduce costs, which processes are not competitive or productive, and if there are any steps that can be outsourced (Blocher, et…show more content…
The value chain works to uncover processes within processes so that the management team can identify which processes are linked together and which processes are not needed at all (Gertner, 2013). When Porter originally developed the concept of the value chain, he identified five activities that are primary within any company and four activities that support the primary activities. The five activities that are primary are operations, inbound and out bound logistics, service, and marketing and sales (Pivoda, 2014). The four support activities are, human resource management, firm infrastructure, procurement and technology development (Pivoda, 2014). All of these activities pulled together are the independent activities that are actually interdependent on one another to a company’s success (Pivoda, 2014). The value chain evaluates each of these to determine how they can be improved to better prepare the company’s future. The value chain management system works by looking into each system and/or process within the agency and evaluates them for defects. The value chain starts with the inbound and outbound logistics of the company. These are defined as the planning processes, storage and flow of goods, services and any related information from the company to the customer (Chan, 2007). Operations are the next

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