What is Porter's value chain?

Cara Abbey   |   Member since 2020  |  10+ Answers Submitted  |  ✔ Verified

A value chain is a set of activities that an organization carries out to create value for its customers. Porter proposed a general-purpose value chain that companies can use to examine all of their activities, and see how they're connected.

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Bree Allington   |   Member since 2017  |  10+ Answers Submitted  |  ✔ Verified

Thereof, what is Porter's value chain used for?

Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage.

Also, what is value chain example? Value Chain Analysis Example Value chain analysis allows businesses to examine their activities and find competitive opportunities. For example, McDonald's mission is to provide customers with low-priced food items. Below is an example of a value chain analysis for McDonald's and it's cost leadership strategy.

Abbey Robertson   |   Member since 2015  |  10+ Answers Submitted  |  ✔ Verified

Keeping this in consideration, what is Porter's value chain model?

The Porter's Value Chain Analysis focuses on the systems and activities with customers as the central principle rather than on departments and accounting expense categories. This system links systems and activities to each other and demonstrates what effect this has on costs and profit.

Rosie Ianson   |   Member since 2017  |  10+ Answers Submitted  |  ✔ Verified

Is an example of a support activity in Porter's value chain model?

Sales and service would be examples of supporting activities in Porter's value chain model. Accounting functions like accounts receivables would be an example of a supporting activity in Porter's value chain model.

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Related Answered Questions

Below is a list of answers to questions that have a similarity, or relationship to, the answers on "What is Porter's value chain?". This list is displayed so that you can easily and quickly access the available answers, without having to search first.

Rae Cassidy   |   Member since 2005  |  ✔ Verified

What are the 5 primary activities of a value chain?

The primary activities of Michael Porter's value chain are inbound logistics, operations, outbound logistics, marketing and sales, and service. The goal of the five sets of activities is to create value that exceeds the cost of conducting that activity, therefore generating a higher profit.

Michelle Allwood   |   Member since 2019  |  ✔ Verified

What are the types of value chain?

TYPES OF VALUE CHAIN: • Value Chain is categorized into types based on the type of organizations. Manufacturing based. Service based. FIRM INFRASTRUCTURE The activities such as Organization structure, control system, company culture are categorized under firm infrastructure.

Luke Clifton   |   Member since 2018  |  ✔ Verified

How do you define value chain?

A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product (i.e., good and/or service) for the market.

Caleb Buckley   |   Member since 2016  |  ✔ Verified

Why is value chain important?

At its heart, value chain management is all about making it possible for products, information, and finances to flow, optimizing the processes in which they flow, and creating better value in the relationships between companies, as well as improving the overall efficiency of business.

Janice Whittle   |   Member since 2006  |  ✔ Verified

What are Porter's three generic strategies?

According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus. All of this is achieved by reducing costs to a level below those of the organization's competitors.

Chris Baldwin   |   Member since 2007  |  ✔ Verified

What do you mean by competitive advantage?

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Roger Jacobs   |   Member since 2017  |  ✔ Verified

What is supply chain model?

The supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company (1). The model describes the business processes required to satisfy a customer's demands.

Colleen Allington   |   Member since 2012  |  ✔ Verified

Who created the value chain?

Michael Porter

Elise Drake   |   Member since 2017  |  ✔ Verified

What is a value creation model?

The value creation model is a visualisation of that reinforcing loop and of how a system grows by creating value for the environment from which it derives its right to exist. The core of the model is formed by the distinctive competences—those that enable the organisation to produce goods or services.

Bridget Raven   |   Member since 2019  |  ✔ Verified

What is Porter's five forces used for?

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently used to identify an industry's structure to determine corporate strategy.

Lucas Cassidy   |   Member since 2015  |  ✔ Verified

How do you do Porter's five forces analysis?

Understanding the toolThreat of new entrants. Bargaining power of suppliers. Bargaining power of buyers. Threat of substitutes. Rivalry among existing competitors. Gather the information on each of the five forces. Analyze the results and display them on a diagram. Formulate strategies based on the conclusions.

Carol Gray   |   Member since 2007  |  ✔ Verified

How is Porter's five forces framework used in developing strategies?

The five forces model was developed by Michael E. Porter to help companies assess the nature of an industry's competitiveness and develop corporate strategies accordingly. The framework allows a business to identify and analyze the important forces that determine the profitability of an industry.

Iris Benson   |   Member since 2013  |  ✔ Verified

What are core business activities?

core activities. Business functions that are critical, and closely related, to a firm's strategy expressed in customer service, marketing, product design, etc. Routine administrative and maintenance tasks are not a part of core activities. See also core competencies.

Mike Shaw   |   Member since 2014  |  ✔ Verified

What is the Porter's value chain model?

Porter's value chain involves five primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service. The generic value chain model visually represents all activities with equal weight. However, value chain analysis emphasizes the real needs of the company.

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