Value Chain Analysis

Creating Value

Read or listen to these resources on Dr. Michael Porter’s competitive strategies.

Porter, M. E. and Mauborgne, K. R., HBR’s 10 must reads on strategy. Ascent Hu. Audio book.

Go to Library Access. In Additional Library Resources, select Skillsoft Books. In the search box enter: HBR’s 10 must reads on strategy, select the Books tab, then select: HBR’s 10 must reads on strategy.

Kamran, Qeis (2021). Strategic value chain management: Models for competitive advantage. Kogan Page. Chapters 1 – 5

Go to Library Access. In Additional Library Resources, select Skillsoft Books. In the search box enter: Strategic value chain management: Models for competitive advantage, select the Books tab, then select: Strategic value chain management: Models for competitive advantage.

Value Chain Analysis

Research a firm that interests you and on which you can obtain sufficient information; find information through sources such as Forbes.com and Businessweek.com, etc., or journal publications.

In this assignment, you are to apply Porter’s value chain model to the firm you selected. Your paper should cover the following:

What is Porter’s value chain model and how can it be applied to the selected firm?,
What primary activities in the value chain are most significant for the firm’s competitiveness?,
What support activities contribute to the firm’s overall value creation?,
How does the firm create competitive advantage using value chain strategies?,
What insights from your research help explain the firm’s strategic position?

Comprehensive General Response:

In this assignment, you are expected to analyze a firm using Porter’s Value Chain Model, focusing on how it creates value and gains a competitive advantage. Here’s how to approach it generally:

1. Application of Porter’s Value Chain Model:

The value chain breaks down a firm’s activities into primary and support functions that contribute to customer value and competitive advantage. You would apply this by examining the company’s operations and identifying activities where it excels or adds value.

Value Chain Analysis

2. Primary Activities Analysis:

These include:

Inbound Logistics: Managing materials and supplies efficiently.
Operations: Manufacturing or producing goods/services effectively.
Outbound Logistics: Delivering products to customers.
Marketing & Sales: Promoting and selling the product effectively.
Service: Customer support and post-sale services.

For your chosen firm, identify which of these activities are most crucial. For example, a retailer may focus heavily on outbound logistics and marketing.

3. Support Activities Analysis:

These include:

Procurement: Efficient purchasing strategies.
Technology Development: Use of IT and innovation.
Human Resource Management: Hiring and training top talent.
Firm Infrastructure: Leadership, finance, and quality management.

You should evaluate which of these areas drive internal efficiencies or strengthen market position.

4. Competitive Advantage Strategies:

Explain whether the firm uses:

Cost Leadership: Offering lower prices through efficiency.
Differentiation: Offering unique features or superior quality.
Focus Strategy: Targeting niche markets.

Illustrate with examples from your research on how the firm creates this advantage.

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