This link has been bookmarked by 5 people . It was first bookmarked on 01 Jul 2009, by Suhit Anantula.
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30 Sep 12
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alue chain analysis
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Michael Porter published the Value Chain Analysis in 1985
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Value Chain Analysis helped identify a firm's core competencies and distinguish those
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activities that drive competitive advantage
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orter's strength was to condense this activity based cost analysis into a generic template consisting of five primary activities and four support activities. The nine activity groups are:
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Primary activities:
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1. inbound logistics: materials handling, warehousing, inventory control, transportation;
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2. operations: machine operating, assembly, packaging, testing and maintenance;
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3. outbound logistics: order processing, warehousing, transportation and distribution;
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4. marketing and sales: advertising, promotion, selling, pricing, channel management;
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5. service: installation, servicing, spare part management;
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Support activities:
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6. firm infrastructure: general management, planning, finance, legal, investor relations;
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7. human resource management: recruitment, education, promotion, reward systems;
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8. technology development: research & development, IT, product and
process development;
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9. procurement: purchasing raw materials, lease properties, supplier contract negotiations.
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its key processes or functions, Porter was able to link classical accounting to strategic capabilities by using value as a core concept,
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a generic framework to analyse both the behaviour of costs as well as the existing and potential sources of differentiation.
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07 Dec 10
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01 Jul 09
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Primary activities:
1. inbound logistics: materials handling, warehousing, inventory control, transportation;
2. operations: machine operating, assembly, packaging, testing and maintenance;
3. outbound logistics: order processing, warehousing, transportation and distribution;
4. marketing and sales: advertising, promotion, selling, pricing, channel management;
5. service: installation, servicing, spare part management;
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