Companies can harness a competitive advantage at any one of the five activities in the value chain. What is the best way for Amazon to provide value throughout its Value Chain. Would building several fulfilment centers across the globe reducing the time to deliver products in near-by communities reduce cost and time to deliver ?
Michael Porter’s Value Chain Framework
All five primary activities are essential in adding value and creating a competitive advantage and they are:
Inbound logistics: arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores
Operations: concerned with managing the process that converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services).
Outbound logistics: is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.
Marketing and sales: selling products and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Service: includes all the activities required to keep the product working effectively for the buyer after it is sold and delivered.
Companies can harness a competitive advantage at any one of the five activities in the value chain.
What is the best way for Amazon to provide value throughout its Value Chain. Would building several fulfilment centers across the globe reducing the time to deliver products in near-by communities reduce cost and time to deliver ?
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