Analysis Of Porter's Value Chain Analysis Model

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

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 consumers. Service activities include maintenance, installation and repair to keep product and service working effectively after-sale and delivery. Thus, the intention of these primary activities are to create value that exceeds the cost of providing good and services and help organization achieve a higher

252; Edginton & Hayter 2013, p. 17). More specifically, Edginton and Hayter (2013, p. 21-22) note that the change in logistic system from head office to local warehouse in Japanese electronic subsidiaries in ASEAN countries have a significant effort on meeting higher volumes of production and sales not only in ASEAN region but also for worldwide networks. For instance, Lui (cited in Edginton & Hayter 2013, p. 22) reports that Omron Corporation in Singapore runs the regional computer system track orders and sale information, which receives order from other countries to centre office in Singapore and then delivery information shipping of products to ASEAN factory such as Indonesia, Thailand or Vietnam. This decision not only saves logistic cost, but also affiliates companies located in ASEAN and added more value on delivery product to customer. Furthermore, marketing, sales and customer service in primary activities should also decentralise or adapt with local customer and local market. Indeed, understanding the differentiation of consumer taste between Japan and local countries, many Japanese household companies in Bangkok change the design of products which is suitable with local market and the factories were more oriented to global market (Edginton & Hayter