Question

Demonstrate how facebook can add value by using porter's , value chain analysis (350) words

Answer 1

Porter's value chain analysis for Facebook=

Identify competitive advantage sources

With the help of the value chain analysis, Facebook can find out the different sources of competitive advantages during the planning process. It is a well-known fact that any organization is a collection of various activities which share some common objectives with each other. All the activities cannot be traded in the external market by Facebook. As per value chain analysis, there are three main activities that can be considered by any organization as economic rent sources. These activities will help the company to impose the barriers to new entrants or impose cost disadvantages to the competitors.

Identify complex inter-relationships and interdependencies

With the help of value chain analysis, Facebook will be able to identify the different internal and external relationships among the various processes. The different internal connections can be seen as interrelationship that exists among the activities within the organization and external linkages represents the relationships existing between the business units of a similar or different organization. With the help of the analysis of these interrelationships, a lot of advantages can be enjoyed by the organization from proper coordination and combined optimization

Improved flow of materials, information and finances

With the help of value chain analysis, Facebook can have optimization in the field of financial, product and information flow.

• New business opportunities can be identified by Facebook with the help of the improved quality of information flow and it can also help in controlling the external threats. With the help of proper value chain analysis, the company can also fill all the gaps on time that can result in an adverse impact on the overall productivity of the organization.
• The material and product flow of Facebook can be improved with the help of the effective execution of the value chain analysis.
• The present customers give a lot of significance to the prompt response and easy access to the vital and critical product-related information. The customer-supplier relationships can be affected in a great deal by the unexpected interruption in the information flow. The different types of bottlenecks in the information flow can be identified and highlighted by the Facebook Value Chain Analysis and its execution