{"id":4126,"date":"2014-05-08T18:23:55","date_gmt":"2014-05-08T18:23:55","guid":{"rendered":"http:\/\/www.marketingteacher.com\/value-chain-analysis\/"},"modified":"2023-12-04T20:31:49","modified_gmt":"2023-12-04T20:31:49","slug":"value-chain-analysis","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/value-chain-analysis\/","title":{"rendered":"Value Chain Analysis"},"content":{"rendered":"<h1>Value Chain Analysis<\/h1>\n<ul class=\"lessonlinks\">\n<li class=\"lesson active\"><a href=\"https:\/\/marketingteacher.com\/staging\/5483value-chain-analysis\/\">Lesson<\/a><\/li>\n<li class=\"exercise\"><a href=\"https:\/\/marketingteacher.com\/staging\/5483exercise-value-chain-analysis\/\">Exercise<\/a><\/li>\n<li class=\"answer\"><a href=\"https:\/\/marketingteacher.com\/staging\/5483answer-value-chain-analysis\/\">Answer<\/a><\/li>\n<\/ul>\n<p>The value chain is a systematic approach to examining the development of   competitive advantage. It was created by M. E. Porter in his book,   Competitive Advantage (1980). The chain consists of a series of   activities that create and build value. They culminate in the total   value delivered by an organisation.<\/p>\n<h1>Support Activities.<\/h1>\n<h2>Procurement.<\/h2>\n<p>This function is responsible for all purchasing of goods, services   and materials. The aim is to   secure the lowest possible price for purchases of the highest possible   quality. They will be responsible   for outsourcing (components or operations that would normally be done   in-house are done by other   organisations), and ePurchasing (using IT and web-based technologies to   achieve procurement aims).<\/p>\n<h2>Technology Development.<\/h2>\n<p>Technology is an important source of competitive advantage. Companies   need to innovate to reduce   costs and to protect and sustain competitive advantage. This could   include production technology,   Internet marketing activities, lean manufacturing, Customer Relationship   Management (CRM), and many   other technological developments.<\/p>\n<h2>Human Resource Management (HRM).<\/h2>\n<p>Employees are an expensive and vital resource. An organisation would   manage recruitment and s  election, training and development, and rewards and remuneration. The   mission and objectives of the   organisation would be driving force behind the HRM strategy.<\/p>\n<h2>Firm Infrastructure.<\/h2>\n<p>This activity includes and is driven by corporate or strategic   planning. It includes the Management   Information System (MIS), and other mechanisms for planning and control   such as the accounting   department.<\/p>\n<p>The &#8216;margin&#8217; depicted in the diagram   is the same as added value. The organisation is split into &#8216;primary   activities&#8217; and &#8216;support activities.&#8217; Also see <a href=\"https:\/\/marketingteacher.com\/staging\/5483value-curves\/\">value   curve<\/a>.<\/p>\n<h1>Primary Activities.<\/h1>\n<h2>Inbound Logistics.<\/h2>\n<p>Here goods are received from a company&#8217;s suppliers. They are stored   until they are needed on the production\/assembly line. Goods are moved   around the organisation.<\/p>\n<h2>Operations.<\/h2>\n<p>This is where goods are manufactured or assembled. Individual   operations could include room service in an hotel, packing of   books\/videos\/games by an online retailer, or the final tune for a new   car&#8217;s engine.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"\/image\/content\/value_chain.gif\" alt=\"Value Chain\" class=\"large yellow aligncenter\" \/><\/p>\n<h2>Outbound Logistics.<\/h2>\n<p>The goods are now finished, and they need to be sent along the supply   chain to wholesalers,   retailers or the final consumer.<\/p>\n<h2>Marketing and Sales.<\/h2>\n<p>In true customer orientated fashion, at this stage the organisation   prepares the offering to meet   the needs of targeted customers. This area focuses strongly upon   marketing communications and the   promotions mix.<\/p>\n<h2>Service.<\/h2>\n<p>This includes all areas of service such as installation, after-sales   service, complaints handling,   training and so on.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organisation.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-4126","post","type-post","status-publish","format-standard","hentry","category-strategy-tools"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4126"}],"version-history":[{"count":1,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4126\/revisions"}],"predecessor-version":[{"id":7564,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4126\/revisions\/7564"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}