Chapter 5 Value Chain And SWOT Analysis
VALUE CHAIN AND SWOT
ANALYSIS
Chapter 5
VALUE CHAIN ANALYSIS
It is undertaken to evaluate a company’s value chain elements.
Value chain analysis helps only in identifying the strengths and weaknesses of each elements of firm’s value chain.
It can not be used to identify external opportunities and threats.
SWOT ANALYSIS
It is a situation analysis of the organization.
It is a groundwork for matching the strategy both to the external market and internal resources. It is away to analyze a firm’s internal and external situations.
VALUE CHAIN ANALYSIS
It has been popularized by Michael Porter.
The value chain provides a disaggregated view of a firm.
It is a systematic way of viewing the series of activities a firm performs to provide a product to its customer.
A value chain consists of a firm’s primary and support activities.
PRIMARY AND SUPPORT ACTIVITIES
The primary activities are involved with thePhysical creation of the product
Its distribution and marketing
The after sales service
In another way, primary activities includeInbound logistics
Operations/production
Outbound logistics
Marketing and service
PRIMARY AND SUPPORT ACTIVITIES
Inbound logistics include Receiving inputs
Storing inputs
Handling inputs
In another way, this includes Material handling
Storing of products in warehouse
Scheduling of vehicles for transport of products/materials Return to supplier
PRIMARY AND SUPPORT ACTIVITIES
Operations include Machining
Packaging
Assembly
Testing
Equipment
Maintenance
And other activities transforming input into the final products
PRIMARY AND SUPPORT ACTIVITIES
Marketing includes Advertising
Sales promotion
Public relations
Personal selling
Sales force
Selection of distribution channel
Pricing of products etc
PRIMARY AND SUPPORT ACTIVITIES
Service includes Repair of machines
Installation of machinery
Training to customers (dealers)
Supply of parts
ANALYSIS
Chapter 5
VALUE CHAIN ANALYSIS
It is undertaken to evaluate a company’s value chain elements.
Value chain analysis helps only in identifying the strengths and weaknesses of each elements of firm’s value chain.
It can not be used to identify external opportunities and threats.
SWOT ANALYSIS
It is a situation analysis of the organization.
It is a groundwork for matching the strategy both to the external market and internal resources. It is away to analyze a firm’s internal and external situations.
VALUE CHAIN ANALYSIS
It has been popularized by Michael Porter.
The value chain provides a disaggregated view of a firm.
It is a systematic way of viewing the series of activities a firm performs to provide a product to its customer.
A value chain consists of a firm’s primary and support activities.
PRIMARY AND SUPPORT ACTIVITIES
The primary activities are involved with thePhysical creation of the product
Its distribution and marketing
The after sales service
In another way, primary activities includeInbound logistics
Operations/production
Outbound logistics
Marketing and service
PRIMARY AND SUPPORT ACTIVITIES
Inbound logistics include Receiving inputs
Storing inputs
Handling inputs
In another way, this includes Material handling
Storing of products in warehouse
Scheduling of vehicles for transport of products/materials Return to supplier
PRIMARY AND SUPPORT ACTIVITIES
Operations include Machining
Packaging
Assembly
Testing
Equipment
Maintenance
And other activities transforming input into the final products
PRIMARY AND SUPPORT ACTIVITIES
Marketing includes Advertising
Sales promotion
Public relations
Personal selling
Sales force
Selection of distribution channel
Pricing of products etc
PRIMARY AND SUPPORT ACTIVITIES
Service includes Repair of machines
Installation of machinery
Training to customers (dealers)
Supply of parts