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Value Chain Analysis 
 ACT ‘C’ Group III 
YeshiWangchuk (404) 
Sonam Rabgay (100) 
Damchoe (217) 
DamchoeWangchuk (060) 
Melam Rinzin (277) 
Choki Gyeltshen (412) 
Born in 1947 
Harvard professor 
Wrote book, Competitive Advantage
Firm Infrastructure 
Human Resource Management 
Technology Development 
operations 
Marketing 
& Sales 
Outbound 
Logistics 
Inbound 
Logistics 
Procurement 
Services 
Primary Activities 
Support 
Activities 
Figure 1: Porter’s Generic Chain
Primary Activities 
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
Support 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
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 
Business 
Infrastructure 
Human Resource 
management 
Technology 
Development 
Primary 
Activities 
400 Plus Truck-Tractors, 30000 square foot stores for small town 
Top management spending bulk of time within stores, employees called as 
associates, incentives and profit sharing, stock purchase, Decentralization 
Uniform Product Code (UPC) at point of sale, Cross docking, Satellite 
Marketing 
& Sales 
Network 
Outbound 
Logistics 
Operations 
Inbound 
Logistics 
Services 
Very low 
cost as 2% 
(half of 
industry 
average) 
9 to 9 
working 
hours , 
7 days of 
week 
Strong 
presence 
of 
distributio 
n centers 
Every day 
low price. 
Always 
low price, 
cash and 
curry 
Quick 
response, 
No 
question 
asked 
policy on 
returns. 
Supportive 
Activities 
Procurement 
Good bargaining power with vendors, No vendor accounting for more 
than 2.8% of total purchase.
Value Chain & Value System of TATA motors 
Inbound 
Logistics 
Transporters, Convoy 
Drivers Association 
SAP , VCM 
Operations Marketing 
& 
sales 
Service 
Outbound 
Logistics 
Suppliers , Contractors 
SAP , CRM - DMS 
Strategic Alliances 
Dealer Network, Marketing 
Research Firms, Vehicle 
Financing 
Regional Warehouses, 
Dealer Workshops, 
Distributors, TASS
Value Chain Analysis

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Value Chain Analysis

  • 1. Value Chain Analysis  ACT ‘C’ Group III YeshiWangchuk (404) Sonam Rabgay (100) Damchoe (217) DamchoeWangchuk (060) Melam Rinzin (277) Choki Gyeltshen (412) Born in 1947 Harvard professor Wrote book, Competitive Advantage
  • 2. Firm Infrastructure Human Resource Management Technology Development operations Marketing & Sales Outbound Logistics Inbound Logistics Procurement Services Primary Activities Support Activities Figure 1: Porter’s Generic Chain
  • 3. Primary Activities Inbound Logistics  The receiving and warehousing of raw materials  Distribution of raw materials to manufacturing and operations
  • 4. Primary Activities Operations  Process of transforming inputs into finished goods and services
  • 5. Primary Activities Outbound Logistics  Warehousing of finished goods  Distribution of those finished goods to customers or retail stores
  • 6. Primary Activities Marketing & Sales  Identification of customer needs  Deploying product into marketplace  Process of selling to customers
  • 7. Primary Activities Service  Supporting customers after they buy products and services
  • 8. Support Activities Procurement  The purchasing of raw materials and inputs needed to create the product
  • 9. Support Activities Technology Development  Technology developments that support value chain activities
  • 10. Support Activities Human Resource Management  Activities associated with recruiting, training, hiring, and compensation
  • 11. 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
  • 12. 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
  • 13. SERVICE BASED WALLMART’S VALUE CHAIN Business Infrastructure Human Resource management Technology Development Primary Activities 400 Plus Truck-Tractors, 30000 square foot stores for small town Top management spending bulk of time within stores, employees called as associates, incentives and profit sharing, stock purchase, Decentralization Uniform Product Code (UPC) at point of sale, Cross docking, Satellite Marketing & Sales Network Outbound Logistics Operations Inbound Logistics Services Very low cost as 2% (half of industry average) 9 to 9 working hours , 7 days of week Strong presence of distributio n centers Every day low price. Always low price, cash and curry Quick response, No question asked policy on returns. Supportive Activities Procurement Good bargaining power with vendors, No vendor accounting for more than 2.8% of total purchase.
  • 14. Value Chain & Value System of TATA motors Inbound Logistics Transporters, Convoy Drivers Association SAP , VCM Operations Marketing & sales Service Outbound Logistics Suppliers , Contractors SAP , CRM - DMS Strategic Alliances Dealer Network, Marketing Research Firms, Vehicle Financing Regional Warehouses, Dealer Workshops, Distributors, TASS

Hinweis der Redaktion

  1. Michael Porter is a current Professor at Harvard University and he wrote the well known Competitive Advantage which defines the strategic advantage one business has over its business rivals.
  2. Inbound logistics include the processes like receiving, storing, inventory control, transportation planning. The relationship between suppliers are very important here because they play a major role in the distribution of raw materials.
  3. In Operations the processes that occur are machining, packaging, assembly, equipment maintenance, and testing. Here is where the transformation starts and products come to life and are then sold to customers.
  4. In outbound logistics some of the Processes include: warehousing, order fulfillment, transportation, and distribution management. The products are then sent to Apple for sale
  5. In Marketing and sales the Processes include:advertising, promotion, selling, and retail management
  6. Examples: customer support, repair services, training, and installation
  7. Examples: R&D, process automation, design, redesign SAP is an enterprise resource program that supports various business functions in the value chain. It has financial support features to support accounting in the firm’s infrastructure, human capital management support to help HR management, and operations support to aid in the firm’s operations and procurement. Walmart’s Retail Link system helps keep inventories costs low and procurement costs down