Porter’s value chain

Management concepts in the value chain are the generally relevant research fields for the work. Value chain as a term was initially defined by Porter disaggregating a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation . Porter s value chain consists of a "set of activities that are performed to design, produce, market, deliver and support its product (Porter 1985, pp. 33-40). Developed management concept areas for the value chain can be classified by specialization on values, demand or supply ... 

Some authors argue that Porter s value chain is characterized by classical functional separation and thinking in organizational units instead of processes, since not processes but activities are listed by organizational function (Corsten 2001, p. 93). Over the years, the value chain was further enhanced towards... 

Porter s value chain is one basis for the development of the supply chain. The term supply chain was created by consultant Keith Oliver in 1982 according to Heckmann et al. (2003). Compared to the company-internal focus of Porter s value chain, the supply chain extends the scope towards intra-company material and information flows from raw materials to the end-consumer reflected in the definition of Christopher (1992) a supply chain is a network of organizations that are involved through upstream and downstream linkages in different processes and activities that product value in the form of products and services in the hand of the ultimate consumer . Core ideas of the supply chain concept are ... 

While the previous illustrations are focused on the intra-company supply chain structures, inter-company structures of the supply chain are related to Porter s value chain as shown in fig. 5 (MeyrAVagner et al. 2004, p. 113 based on Rohde/Meyr et al. 2000). 

Concluding, the supply chain and supply chain network concept extends Porter s value chain concept towards cross-company networks in order to improve efficiency and delivery service, minimize costs and inventories... 

In market economies, however, companies are confronted with competition when selling to customers and they use the market competition when purchasing from suppliers. On the other hand, market constellations can change, when many customers compete for limited resources or raw materials provided by few large suppliers. In these situations, prices, values as well as ensured profitability within each company are decisive for the sustainable survival of the business. While the supply chain emphasizes the supply aspects including ensured supply and availability (Corsten 2001, p. 94), an essence of Porter s value chain underlining the value focus and the supply chain concept is required as basis for the study. 

Many refinements that pick up the number of complex value chain relationships have since been added to value chain activities (Slywotzky Morrison, 1997). The link between strategy, management, investment, operations, marketing, service, and the environment is displayed in McLarty s adaptation of Porter s value chain (Chaffey et al., 2004 Deise et al., 2000). This is displayed in Figure 9. 

Fig. 2.8 Assessing the company s competencies by means of Porter s value chain analysis...

The value stream approach in supply chain aligns well with Porter s value chain as shown in Figure 1.7. The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. How value chain activities are carried out determines costs and affects profits. 

Explain the concept of dehvering value by supply chain management. Comment on the hnk between supply chain management and Porter s value chain. 

Value chain It is also known as Porter s value chain, according to Michael Porter the competitive advantage of a company can be assessed only by seeing the company as a total system. This total system comprises both primary and secondary activities. 

In addition to the SCOR model that allows us to identify where value is created throughout the supply chain. Porter s value chain (Figure 1.2) provides an overview of where value is created in an organization. Supply chain and operations are responsible for much of the value creation for an organization. Interestingly, a large percentage of the support value activities and all the primary value activities are comprised supply chain and operations functions. 

Figure 1.2 Value chain. (Adapted from Michael Porter s Value Chain. Competitive Advantage Creating and Sustaining Superior Performance, NY Free Press 1985.)...

Returning to Porter s original value chain, how can company services and support functions like IT, HR or Finance be integrated into strategy, planning and operations as an extended value chain management framework ... 

Locus of Opportunity in the Value Chain Commercial and entrepreneurial opportunities can be delineated by the primary locus of opportunity in the value chain. The term value chain has been used in the business strategy literature to distinguish common elements in a company s process flow. For example. Porter (1985) discusses primary value chain activities as follows ... 

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