CHAPTER 8 PART 2 Flashcards
They use this to identify specific activities in which they can use competitive strategies for greatest impact
Value Chain Model
(Porter’s,1985)
Also shows points where an organization can use information technology to achieve competitive advantage.
Value Chain Model
(Porter’s,1985)
According to Porter’s value chain model, the activities conducted in an organization can be divided into two categories
primary and support activities
Are those business activities that relate to the production and distribution of the firm’s products and services, thus creating value for which customers are willing to pay.
The primary activities
five primary activities
- Inbound logistics (inputs)
- Operations (manufacturing and testing)
- Outbound logistics (storage and distribution)
- Marketing and sales
- After-sales services
Quality control; receiving; raw materials
control; supply schedules
Inbound
logistics
Automated Warehousing systems
Inbound
logistics
Manufacturing; packaging; production control; quality control; maintenance
Operations
Computer-controlled machining systems; computer-aided flexible manufacturing
Operations
Finishing goods; order; handling; dispatch; delivery; invoicing
Outbound logistics
Automated shipment systems; online point of sale and order processing
Outbound logistics
Customer management; order taking; promotion; sales analysis; market research
Marketing and
Sales
Computerized ordering systems; targeted marketing
Marketing and
Sales
Warranty; maintenance; education and training; upgrades
Customer Service
Customer relationship management systems
Customer Service
