Analysis Of Porter 's Value Chain Analysis Essay examples

Analysis Of Porter 's Value Chain Analysis Essay examples

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These days, with the rapid change in business environment and competition which require the quick and continual adaptation of organization, it can be denied that the information technology advancements play an important role on transforming the business model and achieving a competitive advantage. There is a range of management information systems in which a successful organization do better at creating and adding more value for customers than the competitors do. Additionally, information systems with the analysis tools not only contribute on identification of activities, but also develop strategic advantages in business. According to Laudon and Laudon (2016, p. 94), Porter’s value chain analysis model is one of the analysis tool to determine the value-creating processes for assessing competitive advantage. Porter (cited in The Institute for Manufacturing 2014; Laudon & Laudon 2016, p. 104; Koc & Bozdag 2016, p. 3) describes the value chain is a range of business activities including primary and support activities that add a margin of value to firm’s products and service where a firm can use information technology most effectively to gain competitive advantage.
Primary activities are directly involved in production and transferring of the product to customer and after-sale support. These activities include inbound logistics, operations, outbound logistics, sales and marketing, and service. Inbound and outbound logistics refer to material handling, warehousing, processing and distributing products. Operations are all the activities required to transform inputs into final product, in which value is added for customer through production line. Marketing and sales include informing, promoting and selling firm’s products and service to ...


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...actic and possibly the strategy can be changed by collection of statistics combines with a feedback and self-correction loop. This will result in an increase in the satisfaction of customer and the efficient organization activities.
Conclusion

Porter’s value chain analysis model is a useful tool for organization to identify value activities along with the way to create the value for the customers and the superior competitive advantage for organization consequently. Therefore, understanding the advantage of this analysis tool, it will help companies arrange the necessary level of resource as well as recognise the potential investment decision in order to eliminate errors and work effectively. However, this tool also requires organization constantly evaluating, updating and changing value activities to adapt with an ever-changing business environment and regulation.

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