Michael Porter first introduced his idea of the value chain seen above in his book Competitive Advantage released back in 1985. The value chain is a method of analysing a businesses manufacturing methods or services they provide and offering ways to improve or recreate the system entirely to benefit the business and make it more efficient. An organisation looking to improve and progress their business would carry out the activities listed in porter's value chain. These activities would help a business determine its sources of value and come up with new ideas to improve them.
Porter's value chain focuses on company systems and how changing the inputs can effect the organisations outputs which are then sold to customers. The value chain is …show more content…
e.g. Ikea being such a large company operates in over 40 countries with around 14 of these being franchise businesses. Ikea buys its products fully completed from suppliers meaning they do not create their own products but merely sell other companies manufactured …show more content…
This is done by offering special benefits, advertising well and promoting you're products so they are well known. e.g. Ikea advertises low prices targeting families with low income and provides a nice friendly atmosphere to its customers making them more attractive than other competitors.
Service
A companies services relate to maintaining the value of their products or services by providing things such as installation so it works correctly, repair encase it breaks over a period of time and maintenance to try prevent a problem before it occurs. Those are some examples and in Ikea's case they provide information on their products through displays or leaflets, they offer self help services and provide support activities to consumers.
Support Activities
Firm Infrastructure
This involves the activities and functions in a company allowing them to maintain its daily operations such as things like a control systems or a companies culture. e.g. Ikea has an hierarchical organisation structure and maintains large scales stores with
Porter's value chain focuses on company systems and how changing the inputs can effect the organisations outputs which are then sold to customers. The value chain is …show more content…
e.g. Ikea being such a large company operates in over 40 countries with around 14 of these being franchise businesses. Ikea buys its products fully completed from suppliers meaning they do not create their own products but merely sell other companies manufactured …show more content…
This is done by offering special benefits, advertising well and promoting you're products so they are well known. e.g. Ikea advertises low prices targeting families with low income and provides a nice friendly atmosphere to its customers making them more attractive than other competitors.
Service
A companies services relate to maintaining the value of their products or services by providing things such as installation so it works correctly, repair encase it breaks over a period of time and maintenance to try prevent a problem before it occurs. Those are some examples and in Ikea's case they provide information on their products through displays or leaflets, they offer self help services and provide support activities to consumers.
Support Activities
Firm Infrastructure
This involves the activities and functions in a company allowing them to maintain its daily operations such as things like a control systems or a companies culture. e.g. Ikea has an hierarchical organisation structure and maintains large scales stores with