10-12-2012, 03:07 PM
VALUE CHAIN ANALYSIS
VALUE CHAIN.pptx (Size: 245.12 KB / Downloads: 22)
INTRODUCTION
Value chain analysis is one of the technique that are useful in under- standing and analyzing both intra- organisation and inter-organisation processes in order to identify sources of competitive advantage.
SIX BUSINESS FUNCTIONS OF THE VALUE CHAIN
RESEARCH AND DEVELOPMENT
DESIGN OF PRODUCTS, SERVICE
PRODUCTION
MARKETING & SALES
DISTRIBUTION
CUSTOMER SERVICE
PRIMARY ACTIVITIES
INBOUND LOGISTICS
OPERATIONS
OUTBOUNG LOGISTICS
MARKETING AND SALES
SERVICE
SUPPORT ACTIVITIES
PROCUREMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
LIMITATION OF VALUE CHAIN ANALYSIS
It describes an industrial organization which essentially buys raw materials and transforms these into physical products.
Value for the final customer is the value only in its theoretical context and not practical terms.
CONCLUSION
The value chain framework shows that the value chain of a company may be useful in identifying and understanding crucial aspects to achieve competitive strengths and core competencies in the market place.
This model also reveals how the value chain activities are tied together to ultimately create value for the customer.