Michael Porter's Value Chain Model In The Electronic Industry

1692 Words 7 Pages
Carlos Merchan
Richard Klein
CGS 3300
12 April 2016
The Electronic Industry
E-Commerce is a type of business model that enables a firm or company to conduct business over the internet. It entitles activities, such as buying and selling, products and services, providing customer service, offering vendor support, and publishing and disseminating information over the internet (Bidgoli 163). E-commerce transactions happen in all four of the major market segments: business to consumer, business to business, consumer to business, and consumer to consumer. The electronic industry is making a significant impact in our traditional ways of conducting business. It is more powerful than the traditional resources that were implemented by companies all
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These products create unique chances for personal learning at every level, regardless of age and grade. Products such as the iPad, iPhone, and MacBook have features that can aid and enhance a student’s learning experience.
Michael Porter’s Value Chain Model
One of the most significant ways to examine the e-commerce and its role is to analyze the value chain model. This model consists of a series of activities intended to meet a business’ needs by adding cost in each stage of the process (Bidgoli 164). There are 5 primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service (Bidgoli 164). All five primary activities in the Porter’s model plays a significant role for Apple via the internet in the following ways.
Inbound logistics Apple has executed a sophisticated automated receiving system that is managed via the internet to speed up the receiving process of goods and materials. They also delegate raw material acquisition, working with OEM partners to delegate this process and to supervise quality control (Dudovskiy).
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Direct products are distributed to go to a warehouse in California in order to supply retail stores, direct sales, wholesalers, and retailers. Indirect products, which are delivered through and intermediate warehouse via UPS/FedEx, supply the online stores (Dudovskiy).
Marketing and sales
Apple Inc. has four main channels of distribution in which they sell products and offer services. Most of the budget allocated for this phase is invested in advertising, public relations, events, and direct selling (Dudovskiy).
Service
Apple invests a significant amount of time and money in improving their services to its customers. It does this in three different stages: pre-purchase, during the purchase, and post-purchase. All these services can be found in retail stores and also over the internet (Dudovskiy).
It is very clear as stated above that Apple Inc. is a perfect reflection of Michael Porter Value Chain. They operate in all of the phases to ensure an optimal service and provide a more beneficial e-commerce. They aim to increase their customer loyalty, improve customer service, and reduce pricing by dealing directly with the

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