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Value Chain Analysis

The value chain of a firm describes the activities a company undertakes to deliver a product or service to customers. It includes inbound logistics, operations, outbound logistics, marketing and sales, and service. Coordinating these value creation activities is important for identifying customer needs, creating value through product development and production, and communicating and delivering value to customers. Managing both the demand chain through marketing and the supply chain through procurement and logistics is key to the value chain strategy.

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51 views9 pages

Value Chain Analysis

The value chain of a firm describes the activities a company undertakes to deliver a product or service to customers. It includes inbound logistics, operations, outbound logistics, marketing and sales, and service. Coordinating these value creation activities is important for identifying customer needs, creating value through product development and production, and communicating and delivering value to customers. Managing both the demand chain through marketing and the supply chain through procurement and logistics is key to the value chain strategy.

Uploaded by

aishwarya waghmare
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Value Chain of a Firm

Prof.Yogesh D.Brahmankar
SIBM Pune
Symbiosis International University
Value Chain of a Firm
Firm Infrastructure

Human Resource Management

Technology Development M
A
Procurement R
G
I
N
Inbound Operations Outbound Marketing Services
Logistics Logistics and Sales
Strategic Value Chain Analysis
The Value Chain
Supply Chain Management Predetermined Customer
Satisfaction Objectives
Competitive Necessities

Demand Chain Management What Customer needs


to be satisfied ?
Competitive Advantage by Whom?
How ? Where ? When ?
Reversing The Value Chain
Traditional Business Design ( Product Focussed)

Product/
Core
Processes Services Channels Customers
Competencies

Customer-Centric Design

Customer Integrated Product/ In House &


Flexible
Shared Core
Needs Channels Services Processes
Competencies
A Basic Value Chain

Identify Value Create Value Communicate


Deliver Value
Expectations Value
Coordination of Value Creation Activities
• Customer Research • Sourcing
• Product Spec. • Material mgt
• Prototype Testing • Mfg. Process Mgt
• Product Modification & • Product Modification
Development

Identify
Create The
Value
Value
Expectations

Deliver The Communicate


Value The Value • Distributor
• Product Delivery Prog.
• Customer Service Prog. Communication
• Customer
• Customer Follow Up &
Communication
Research • Internal Cust.Comm.
• Product Recall Prog.
Value Chain: Processes and Activities
Value
Processes R&D Sourcing Logistics Production Logistics Mktg Logistics Service
Strategic
Decisions
Identify Value
Expectations X X
Create The
Value X X X X X X X X
Communicate
Value X X
Deliver the
Value X X X
Service the
Value
X X
A Generic Value Chain Design: Roles & Tasks

Logistics
Availability
Inbound
Stocks
Logistics
Flows
Internal Outbound
Procurement
Logistics Logistics

Customer Value
Expectations
R &D Production Marketing Service Delivery

Product & Capacity Mgt Brand Dev. Customer Care


Process Design Quality Mgt Brand Mgt
Customer Loyalty
Differentiation Planning & Customer
Customisation Scheduling Communication
Value Chain Strategy & Management
Demand Chain Management
Design & Development Marketing Service
Management

Customer Value Management


Product & Service Specn Brand Dev.& Mgt Provide Additional
Market liaison Value addition
Customer Expectations

Reseller Reinforcement
Process Design Communication Build Customer Loyalty

Market Knowledge

Procurement Production Logistics Management


Management Management

Effective Sourcing Manage Product Features Cost Efficient

Negotiation Manage Volumes Stocks & Flows

Transactions mgt Manage Costs Time

Supply Chain Management

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