Question

Strategic Marketing:

Porter’s Value Chain is made up of Primary Stages and Support Activities.

Use a matrix to show how Porter’s Value Chain can be used to make decisions about which of Porter’s Generic Strategies is appropriate for a company to use.

To do this, set up a table that lists each of Porter’s Generic Strategies as a column heading and each of the primary stages and support activities of Porter’s Value Chain as rows.

Fill in the appropriate cells to explain where the value chain analysis may provide insights into the different strategy type options.

Use examples to aid your description.

Word-count: 500 words maximum.

Answer 1

ANSWER:

Porter's value chain Analysis:

• Value chain analysis is a framework that comapnies can use to identify and evaluate the ways in which their rersources and capabilities can add value.
• Michael E. Porter introduced this framework in the year 1985.
• The value chain analysis enables the companies to understand which parts of their operations and activities create value by segmenting the value chain analysis in to primary stage and supporting activities.
• Value chain analysis is a set of interlinked value creating activities performed by an organisation.
• Value chain analysis is a ,method for assesing the strenght and weakness of an organisation based on an understanding of the series of activities it performs.

Martix Of Porter's Generic Value Chain:

PRIMARY STAGES:

• Primary stages represent traditional line activities such as inbound logistics, operations, outbound logistics, marketing & sales and service.

1. Inbound Logistics:

• Inbound logistics examine all activities related to receipt, control, warehousing,inventory.
• It also examines activities of distribution of raw material and component parts into the production process.

2. Operations:

• Operation stage examined all those neccessary items which are needed to convert the input into finished products.
• For example, it includes machining, assembly, equipment maintenance and packaging.

3. Outbound Logistics:

• Oubound logistics are involved in comapnies activities.
• The activities such as collection, storage.
• Physical distribution of products to customers.
• It includes warehousing or storage of finished goods.

4. Marketing & Sales:

• Marketing and sales activities must be completed to both induce customers to purchase products and ensure that products are available.
• Developing advertising and promotion campaigns.
• Marketing and sales helps in selecting and developing distribution channels.
• Selecting, training, developing and supporting a sales force.

5. Service:

• Services are the activities company offers to enhance or maintain a product's value.
• It includes installation,repair, warranty services.

SUPPORT ACTIVITIES:

• Support activities includes firm infrastructure, Human resource management, technological development and procurement.

1. Firm Infrastructure:

• The firm infrastructure activities support the activities performed in the comapny's value chain.
• The activities formed in comapny's value chain includes general management practices, planning, finance,accounting etc.
• By performing its infrastructure related activities a company identifies external opportunities and threats and the internal strenght and weaknesses.

2. Human Resource Management:

• Human resource management is related to recruitment, hiring, training etc.
• It also includes developing and compensating of a company's employees.

3. Technological Development:

• Technological development activities are that are completed either improve a company's products or its production process.
• Technological development includes basic research,process, equipment design and product design etc.

4. Procurement:

• Procurement activities are completed to purchase the input that are needed to produce a comapny's products.
• Procurement includes items consumed or used in the manufacturing process.
• The items used in manufacturing process such as supplies, raw material, machinery etc.

NOTE:

• In the above , meaning of Porter's value chain Analysis.
• Matrix of Porter's Value Chain Analysis.
• Porter's generic value chain Primary stage and Supporting activities are explained in detail.