Value Chain System - 4282 Words

VALUE CHAIN SYSTEM The value chain concept was created by Michael Porter and explained in his book â€Å"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†¦show more content†¦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 gi ve 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, IntelShow MoreRelatedThe Value Chain By Michael E. Porter And Popularized Essay809 Words   |  4 PagesThe Term ‘value chain’ was coined by Michael E. Porter and popularized in his business management book, Competitive advantage: creating and sustaining superior performance. According to Michael E. Porter, the value chain includes the activities within and around a company that creates a product or service. Porter’s value chain constitutes a set of activities that are performed to design, product and market, deliver and support its products. Porter distinguished between; †¢ Primary activities: inboundRead MoreValue Chain : Marketing And Distribution1616 Words   |  7 Pages A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market (Wikipedia). Porter (1985) agrees that a value chain is a set of activities that an organization carries out to create value for its customers. More or less similar definition is given by others. A value chain is the full range of activities-including design, production, marketing and distribution-business go through to bring a product or serviceRead MoreDell Value Chain1717 Words   |  7 PagesVALUE ADDED CHAIN IN DELL SUBMITTED BY: SIDDHARTHA DAS ROLL NO: 32 BATCH: PGDM (FM) 2010-12 SUBJECT: Project and Infrastructure Management: Financing, Implementation and Control Table of Contents Sl.No. | Description | Page No. | 1 | VALUE CHAIN ANALYSIS | 3 | 2 | VALUE CHAIN IN DELL | 4 | 3 | DIRECT SELLING STRATEGY OF DELL | 5 | 4 | COMPONENTS OF DIRECT SELLING STRATEGY | 6 | 5 | ADVANTAGES OF VALUE CHAIN OF DELL | 8 | 5.1 | CONCLUSION | 9 | CHAPTER-1 What is ValueRead MoreStudy The Internal Resources, Capabilities, And Activities Of Firms993 Words   |  4 Pagesto imitate or perfect this company’s advantages for itself. Discussion Question 4.2 Conduct a value chain analysis for McDonald s. What are its primary activities? What are its support activities? Identify the activities that add the most value for the customer. Why? Which activities help McDonald s to contain cost? Why? McDonald’s primary activities in the value chain analysis include supply chain management (purchasing raw materials, produce, paper products, etc.), operations (preparing foodRead MoreThe Value Of A Value Chain1251 Words   |  6 PagesBusinesses create value by converting inputs (that is raw material, labor and overhead) into business outputs in such a way that they have a greater value than the original input cost. Manufacturing companies create value by acquiring raw materials and using them to produce something useful. Retailers bring together a range of products and present them in a way that is convenient to customers, sometimes supported by services such as fitting rooms or personal shopper advice. And insurance companiesRead MoreGoogle strategy1218 Words   |  5 Pagesstrategic activities is also vital to lock out imitators. Porters Value Chain and Activity Mapping concepts help us think about how activities build competitive advantage. The value chain is a systematic way of examining all the activities a firm performs and how they interact. It scrutinizes each of the activities of the firm (e.g. development, marketing, sales, operations, etc.) as a potential source of advantage. The value chain maps a firm into its strategically relevant activities in orderRead MoreThe Value Chain Enterprise Technology Essay1432 Words   |  6 PagesIntroduction Value chain has been increasingly used in businesses as a tool to increase cooperation between production chain units in order to decrease delivery times of products/ services to consumers and coordinating communication between those units, this in return will reduce inventories and increase customer satisfaction. Enterprise technology has been used as an important tool in streamlining business process and making the value chain of an organization better. Its use has played a significantRead MoreFedex Case Study on Creating Value1256 Words   |  6 PagesBPSM (FedEx-UPS) Creating Value at FedEx and UPS From the companys founding close to 30 years ago, FedExs strategic competitiveness has been based on an obsession with, and careful nurturing of, delivery speed and reliability as its core competencies. These competencies have been critical to the pursuit of the opportunities that were associated with Frederick W. Smiths early vision of todays fast-cycle global economy. Believing that value could be added to business firms operations ifRead MoreAn analysis of porters value chain1188 Words   |  5 Pagesfirms can gain a competitive advantage, it is useful to model the firm as a chain of value creating activities. For this purpose, Porter identified a range of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain. According to Porter (1985), Competitive Advantage arises out of the way firms organise and arrange discrete activities. Through using the Value Chain, the activities performed by a firm competing in a particular industry canRead MoreValue Chain as Competitive Advantage1295 Words   |  6 PagesValue Chain as Competitive Advantage Unit 3 Assignment Christine Washington GB570 Managing the Value Chain Jerry Haenisch, Professor Kaplan University November 12, 2012 Value Chain as Competitive Advantage Effective value chain as a competitive advantage can contribute significantly to the prosperity of a firm in the competitive arena, but it can cause dire situations if not operated properly (Guy, 2011). However, there are conflicts among companies as to how stakeholders think they