Value chain is identified as a chain of activities where value is continuously added to the product and service from the product design to final product delivery. Basically, there are many works that are included in the producing process no matter whether it is consume good or service. But not all of the producing activities could be seen as valuable to the entire process, which could offset the cost of time, money, and labor. So when companies are doing the business optimization, the basic things they do are integrating the process and shortening the chain line via cutting off the unnecessary and highly costly links, in order to increase the efficiency of business chain. Generally speaking, when the producing line is long, it is too …show more content…
In a word, value chain analysis is the most fundamental part for all kinds of businesses to do process optimization, enhance the overall business performance, and create competitive advantage. And it will give the business a sort of mind about the internal strengths and weaknesses to help them win the competition.
SF has its own value chain model consisting of two major parts just like other business, support and primary parts. The support part includes basic facilities and administration related to finance and accounting, infrastructure finance such as regional offices and distribution centers, human resources, and IT support. All of those support activities above enable SF effectively finish their jobs and nicely serve their customers. The primary stage of SF’s business consists of three main components including logistics, marketing and sales, and customer service. Basically, the logistic activities at primary level involve the activities of delivering customers’ parcel package to the right destination safely and quickly by scheduling, calculating routes, transportation planning. In general, the primary activities are considered as a process of taking care of customers from the beginning when they place the order of delivering service, the middle time for packages information tracking, and the end about the package condition and the fulfillment to the delivery promise. About the
The term value chain refers to the idea that all of the functions of a company, including production, marketing, product development, service,
Personally, I thought value chain was interesting in that it helps the business create a stronger competitive advantage (Bethel, 2016). If we think about the services we receive, we can see where some organizations are focusing on value added services or products. For example, Chick-fil-a offers premium customer service. In fact, I do not believe
Value chain is a set of activities a company performs in order to provide a valuable solution to their customer problem in their market space or industry. The value chain is made up of primary and support activities. Primary activities being research and development, production, marketing and sales and customer service. These are the primary steps that are required to get a product or service to market to solve the customer problems. Some of the secondary steps include company
It is the wish of every business to be able to achieve and maintain a competitive advantage. A competitive advantage can be considered to be an advantage, a condition or even a position that will make a firm to be able to operate efficiently and also be able to produce products or services that are of a higher quality than the previous ones or than the other competing firms. When a firm is able to achieve increased earnings as compared to the costs it incurred, then it can be said to have achieved a competitive advantage according to Michael Porter, a
A value chain analysis is a strategic analysis of an organization that uses value creating activities (Dess, McNamara, & Eisner, 2016, p. 76). The value chain analysis describes a company’s activities and relates them to an analysis of the competitive strength of the company
Steve Denning (2011), states that customer delight is the firm’s new bottom line and delighting the customer from outsets to outcomes. By focusing on delighting the customer the firm makes a lot more money than they would if they set out to make money. Delighting the customers make a lot of money. Customer delight = providing a continuous stream of additional value to customers and delivering it sooner. It is measurable and means a different way of running the company.
The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.
A significant strategic tool is the Value Chain Analysis, organizations can use this to articulate competitive strategies. It allows organizations to understand the foundation of competitive advantage and to recognize and create
The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.
|Offers low cost, shopping convenience and desirable tenant mix |Unenclosed malls yield higher cost during winter season e.g. snow|
Keane (2008) stated to design, manufacture, promote, offer and facilitate its product or services, all organization engages in some activities. All of these activities of an organization are shown through the use of value chain process. The manner in which organization performs its varying activities along with the firm’s value chain mirrors the organization’s background, strategy along with the way in which the organization executes its strategy. Ponte (2008) stated that the analysis of value chain of an organization is used to develop the organization’s competitive strategies along with formulation the connected and interconnectedness between all the organizational activities that formulate value. Francis, Simons, and Bourlakis (2008) stated that value chain analysis is a helpful tool as an organization looks to attain competitive advantage. Furthermore, Rieple and Singh (2010) stated that a value chain is a useful tool in conceptualizing the varying activities
Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)
The value chain analysis (shown in appendix) was also generated by Michael Porter. This model is referred to “identifying ways to increase the efficiency of the chain” (Investopedia, n.d.). Furthermore, the overall objective is to produce maximum value with minimum total cost and establish a competitive advantage.
Value Chain Analysis describes the activities that take place in a business and related to the business core competencies. It can classify by primary activities and supporting activities.