Michael Porter s Value Chain Analysis - 1813 Words

The business of ecommerce is rapidly increasing, minute by minute. Companies are finding ways to deliver their products to their customers quicker and easier. With this demand in progress, gaining an advantage is an essential key element to the companies success. To distinguish these viable advantages, Michael Porter created value chain analysis, which views a firm as a series of business processes that each add value to the product or service (Baltzan). The value chain analysis is a valuable source for regulating the greatest possible value for consumers. This topic will be further discussed with two major leading companies, Amazon and EBay. The increase in ecommerce will have an impact on the economy as well. Section2: Industry and Competitors The industry of ecommerce is a look into the future. Many believe that Time is Currency and one day shipping will change the business of ecommerce as a whole. One day shipping is not easy and feasible for all companies because the cost is so high. The major leading companies of this industry are Amazon, Google, EBay, and Wal-Mart, as stated in the assignment. There are many retail companies and department stores who offer one day shipping such as Neiman Marcus and Macy’s. E-commerce delivery business strategies varies depending on the company. The main competitors discussed throughout this paper will be Amazon and eBay. Section3: Value Chain of CORP1 Amazon has created a value chain model to ensure that they have the highestShow MoreRelatedAnalysis Of Michael Porter s Value Chain Essay1740 Words   |  7 PagesDuring 1985, Michael Porter, one of the most important American economists, introduced one of his most famous theories: â€Å"The Value Chain†. Through this model is possible to describe an organization like a set of processes. Precisely nine processes divided in five primary activities and four support activities that help the business to gain its competitive advantage. The primary activities are composed by â€Å"Inbound Logistics†, â€Å"Operations†, â€Å"Outbound Logistics†, â€Å"Marketing Sales† and â€Å"Service†, whileRead MoreValue Chain and Competitive Forces Essay1247 Words   |  5 PagesValue Chain and Competitive Forces: Effects of Information Technology Module 2 Case John Dow ITM524: Fundamentals of Information Technology Management Dr. Somebody Somebody February 4, 2012 Introduction Businesses are established with the sole reason to provide a product or service to a customer with the intend to make a profit. The amount of time, effort, and resources spend should generate a profit. Then, the profit dependsRead MoreValue Chain : Competitive Advantage1444 Words   |  6 PagesValue Chain as Competitive Advantage If a firm sustain profits that exceed the industry average, said firm is said to have a competitive advantage. The goal of any given business strategy is to achieve a competitive advantage. Moreover, the goal of a successful business strategy is a sustainable competitive advantage. The question is how does a firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activitiesRead MoreThe Eco $ Ave Project1388 Words   |  6 Pagescritique the claim that The ECO$AVE project presents a useful value proposition and also present a brief evaluation of opportunities or otherwise, facing the ECO$AVE entrepreneurs. Value proposition is identical as competitive differentiation. It s the basis on which customers would purchase a company s product or service as contrasting to another s. If the company can put it through clearly and the customers and employees agree that it s correct, then the company is in business. And if the companyRead MoreValue Chain Analysis And Analysis1589 Words   |  7 Pagesdiscuss and explore the value chain analysis and the internal analysis in the strategic management. The focus of this report is to study the value chain analysis in detail along with the advantages and disadvantage of the value chain analysis. Also, the internal analysis is also discussed along with its pros and cons and the SWOT analysis of Next Plc. This report also discusses the way in which organizational resources are mixed to develop company’s abilities, Value Chain Analysis Keane (2008) statedRead MoreValue Chain as Competitive Advantage1024 Words   |  5 PagesValue Chain as Competitive Advantage Unit 3 Assignment Bobby Young-Mentgen GB570 Managing the Value Chain Pricilla Aaltonen Kaplan University September 25, 2012 Value Chain as Competitive Advantage Customer-centric businesses focus on consistently delivering a differentiated experience designed to satisfy the customer. The ultimate goal is to sustain competitive advantage in the marketplace. The purpose of this paper is to demonstrate why an effective value chain creates competitive advantageRead MoreValue Chain : Competitive Advantage1492 Words   |  6 PagesValue Chain as Competitive Advantage The idea of a value chain was first proposed by Michael Porter (1985) who identified that the more value an organization creates, the more profitable it is likely to be. Porter describes the value chain as the internal processes or series of activities a company performs â€Å"to design, produce, market, deliver and support its product† (Porter, 1985). John Shank and V. Govindarajan (1993) describe the value chain in broader terms than does Porter, affirming â€Å"theRead Moreidentifying competitive advantage3121 Words   |  13 PagesADVANTAGES Video: Panera Bread Cohesion Case: Competitive Advantage:Business Dilemma To survive and thrive, an organization must create a competitive advantage. A  Ã‚  competitive advantage  is a product or service that an organization s customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage. In turn, organizations must develop a strategy basedRead MoreValue Chain Analysis1651 Words   |  7 Pagesinformation technology. This will put the organization at the forefront in terms of innovation as well as give the organization a competitive advantage (Hitt amp; 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 the following; primary and support activities. Primary activities are those activitiesRead MorePanasonic Case Study1162 Words   |  5 PagesFigure 1: Porter s Five Forces on the Electronics Industry The Value Chain framework of Michael Porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage. From a Management point of view, the Value Chain Framework helps to build a relative competitive advantage, together with Porter s Competitive Advantage thinking. The Value Chain Framework can be seen as helping to maximize corporate value creation. Figure 2: Michael Porters