Analyzing the Activities of a Firm
|
Analyzing the Activities of a Firm |
|
|
Articles | Books | Dictionary | Faq | Home | Leaders | Organizations | Search
|
Summary/Abstract
The Value Chain framework of Michael Porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage.
Inbound Logistics
Includes
receiving, storing, inventory control, transportation scheduling.
Operations
Includes machining, packaging, assembly, equipment maintenance, testing and all other value-creating activities that transform the inputs into the final product.
Outbound Logistics
The activities required to get the finished product to the customers: warehousing, order fulfillment, transportation, distribution management.
Value Chain model of Michael Porter: Marketing and Sales
The activities
associated with getting buyers to purchase the product including channel
selection, advertising, promotion, selling, pricing, retail management,
etc.
Service
The activities
that maintain and enhance the product's value, including customer support,
repair services, installation, training, spare parts management,
upgrading, etc.
Procurement
Procurement of raw
materials, servicing, spare parts, buildings, machines, etc.
Technology Development
Includes technology development to support the value chain activities, such as Research and Development, Process automation, design, redesign.
Value Chain model of Michael Porter: Human Resource Management
The activities associated with recruiting, development (education), retention and compensation of employees and managers.
Firm Infrastructure
Includes general management, planning management, legal, finance, accounting, public affairs, quality management, etc.
From a Value Based Management point of view, the Value Chain Framework helps to build a relative competitive advantage, together with Porter's Competitive Advantage thinking. The Value Chain Framework can be seen as one of two dimensions in maximizing corporate value creation. The other value creation dimension is the Market/Industry Attractiveness for which another model from Porter is often used: the Competitive Forces model.
| 👀 | TIP: On this website you can find much more about value chain analysis and design! |
Compare with Porter's Value Chain: Porter Competitive Forces | Porter Competitive Advantage | Porter Diamond Model | Parenting Advantage | Prahalad | BCG Matrix | Greiner | Kay | Mintzberg | Outsourcing | Just-in-time | Bricks and Clicks | Value Stream Mapping | Delta Model
About us | Advertise | Privacy | Support us | Terms of Service
©2023 Value Based Management.net - All names tm by their owners