Essay on Value Chain Analysis

1664 Words Jun 15th, 2013 7 Pages
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1.0 Introduction.
Information technology is an emerging concept and various organizations are adopting the concept in their businesses. In order to remain at the fore front in the current dynamic world, then an organization should adopt the various application of information technology. This will put the organization at the forefront in terms of innovation as well as give the organization a competitive advantage (Hitt & Robert, 2011, p.10).
Value chain analysis is a model that was developed by Michael Porter to help an organization develop a strategy for its organization. Michael porter suggested that organization activities can be grouped into two major categories which include
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Redbox, on the other hand is an American company that deals with DVD and Blu-ray disks. The company has various distributions points commonly known as kiosks that are located across the United States at various destinations. For example, the company has its kiosks located close to pharmacies, fast foods, groceries and other convenient stores (Ferrell & Michael, 2011, p.30).
3.0 Discussion.
Netflix and Redbox mainly deal with entertainment products. The entertainment industry has been rapidly changing and the demands trends in the industry are also changing as well. Most consumers’nowadays require an entertainment program or a platform at the comfort of their homesor work place without any hustle. The above named companiesuses various information technologies in order to have a competitive advantage.
3.1 Netflix Value chain model.
As earlier stated value chain analysis refers to the activities that are geared towards obtaining a competitive advantage in an organization. Value chain analysis is mainly composed of two major parts; the primary activities and the support activities. Netflix Company is employing the value chain analysis model in order to gain competitive advantage over its competitors. The company’s primary activities include the following; * Online warehousing. The

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