Value Chain Analysis
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Value Chain Analysis ACT ‘C’ Group III Yeshi Wangchuk (404) Sonam Rabgay (100) Damchoe (217) Damchoe Wangchuk (060) Melam Rinzin (277) Choki Gyeltshen (412) Born in 1947 Harvard professor Wrote book, Competitive Advantage
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Transcript of Value Chain Analysis
Value Chain Analysis
ACT ‘C’ Group III
Yeshi Wangchuk (404)
Sonam Rabgay (100)
Damchoe (217)
Damchoe Wangchuk (060)
Melam Rinzin (277)
Choki Gyeltshen (412)
Born in 1947Harvard professorWrote book, Competitive Advantage
Firm Infrastructure
operationsMarketing
& SalesOutboundLogistics
Inbound Logistics
Procurement
Technology Development
Human Resource Management
Services
Primary Activities
Su
pp
ort
A
ctiv
itie
s
Figure 1: Porter’s Generic Chain
Inbound Logistics The receiving and warehousing of raw materials
Distribution of raw materials to manufacturing and operations
Primary Activities
Operations Process of transforming inputs into finished goods and
services
Primary Activities
Outbound Logistics Warehousing of finished goods
Distribution of those finished goods to customers or retail stores
Primary Activities
Marketing & Sales Identification of customer needs
Deploying product into marketplace
Process of selling to customers
Primary Activities
Service Supporting customers after they buy products and
services
Primary Activities
Procurement The purchasing of raw materials and inputs needed to
create the product
Support Activities
Technology Development Technology developments that support value chain
activities
Support Activities
Human Resource Management Activities associated with recruiting, training, hiring,
and compensation
Support Activities
Firm Infrastructure Includes general and planning management, legal,
finance, accounting, public affairs, and quality management
Ex. A firm’s legal team consisting of lawyers to aid in lawsuits
Accounting department to keep track of financial figures
Support Activities
Why this matters Profits depends on how well firms execute these
activities in the value chain
Firms that excel in a value chain activity is said to have a competitive advantage
Competitive advantage is gained through cost advantage
Cost Advantage
Reducing cost of individual value chain activities
Reconfiguring the value chain
SERVICE BASED WALLMART’S VALUE CHAIN
Primary Activities
Marketing & Sales
Outbound Logistics
OperationsInbound Logistics
Services
Very low cost as 2%
(half of industry average)
9 to 9 working hours ,
7 days of week
Strong presence
of distribution centers
Every day low price.
Always low price, cash and
curry
Quick response,
No question
asked policy on returns.
Su
pp
ort
ive
Act
ivit
ies
Procurement
Technology Development
Human Resource management
Business Infrastructure
Good bargaining power with vendors, No vendor accounting for more than 2.8% of total purchase.
Uniform Product Code (UPC) at point of sale, Cross docking, Satellite Network
Top management spending bulk of time within stores, employees called as associates, incentives and profit sharing, stock purchase, Decentralization
400 Plus Truck-Tractors, 30000 square foot stores for small town
Value Chain & Value System of TATA motors
Inbound
LogisticsOperations Marketing
& sales
ServiceOutbound
Logistics
Suppliers , Contractors
SAP , VCM
SAP , CRM - DMS
Strategic Alliances
Transporters, Convoy Drivers Association
Dealer Network, Marketing Research Firms, Vehicle
Financing
Regional Warehouses, Dealer Workshops, Distributors, TASS
