Value Chain System

4282 Words Jan 21st, 2011 18 Pages
VALUE CHAIN SYSTEM

The value chain concept was created by Michael Porter and explained in his book “Competitive Advantage”, published in 1980. The value chain is a series of activities that create and build value- culminating in the contribution of total value to the organization. Porter used the concept of value chain as a systematic approach to examining the development of an organization’s competitive advantage in the marketplace.
In using the value chain concept, the total activities undertaken by a business are split into Primary Activities and Support Activities. Primary activities relate to inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities include procurement, technology
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From advanced data centers, application platforms, architecture planning, integration of business applications, e-commerce applications and solutions, system migration and server consolidation. Employing a set of highly skilled consultants having considerable technical expertise in designing, building, implementing and optimizing solutions on Intel architecture. Intel provides a variety of services in the areas of wireless, hardware design, networking and communications, software development, business strategies and solution providers. Intel has established alliances with other leading software technology providers and solutions such as Oracle and SAP to give added value to its customers. It has a variety of solution blueprints on its website advertising its successful applications from a variety of industries. A database of solution providers and resellers of Intel products and solutions has been provided on a technological, geographical and language basis for ease of access and use. (Intel Website).
The success of Intel’s value chain can be judged by the fact that it helped the company earn revenues of US$30.1 Billion in 2003. The company has over 78,000 employees worldwide, with 294 offices and facilities for its 450 odd products. Intel was ranked 53 in the list of Fortune500 companies in 2003. By converting from its EDI systems to one using its RosettaNet business process standards with XML forms, Intel

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