The Value Chain Analysis

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Issue:

Business

 

Written by:

Susan G

 

Date added:

December 15, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1639

 

Was viewed:

9287 times

 

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Essay content:

Porter identified primary and support activities as shown in the following diagram: Porter's Generic Value Chain Inbound Logistics > Operations > Outbound Logistics > Marketing & Sales > Service > M A R G I N Firm Infrastructure HR Management Technology Development Procurement The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin...
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It is in these activities that a firm has the opportunity to generate superior value. A competitive advantage may be achieved by reconfiguring the value chain to provide lower cost or better differentiation. The value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage as follows: * Cost advantage: by better understanding costs and squeezing them out of the value-adding activities...
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