What Is Value Chain Analysis? What Does a Firm Gain When It Successfully Uses This Tool?

In: Business and Management

Submitted By Janetlu
Words 1727
Pages 7
Developed by Michael Porter , Value Chain Analysis is an analytical framework that is used to analyse relationships between various parts of operations and the manner in which each part adds value to contribute to the level of revenues.
Value Chain Analysis the business activities are divided into two categories: primary activities and support activities. The primary activities directly deal with the creation of products or services, whereas, support activities can be used to obtain or increase competitive edge in the marketplace.
Primary activities:
Inbound logistics; Operations; Outbound logistics; Marketing and sales; Service.
Support activities:
Infrastructure activities; Technology; Human resource management and development.

Let us see Pacific Coffee.
Pacific Coffee Company is a Pacific Northwest U.S-.style coffee shop group originating from Hong Kong, with a few outlets in China, Singapore and Malaysia.

Primary activities

Inbound logistics. Pacific Coffee inbound logistics involve company agents choosing coffee beans producers mainly in African continent, South and middle America, Hawaii and Asia ,communication the standards related to the quality of coffee beans, establishing strategic relationships with suppliers and organizing the supply-chain management.

Operations. Pacific Coffee operations are conducted mainly in Hong Kong, Macau , Mainland China, Singapore and Malaysia with stores over 130 in two ways :direct operations of the stores by the company and the licensing.

Outbound logistics. The outbound logistics for Pacific Coffee ,it sells own-brand coffee beans and Jura brand coffee machines to distributors and corporate clients, such as banks, airline companies, clubs and hotels. Its coffee beans are sold in Hong Kong , Macau and Singapore.

Marketing and Sales. Pacific Coffee does not heavily invest in marketing relying…...

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