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Practical application of value chain analysis
Value chain analysis
Value chain analysis
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Assessment Task 1
Organizational Overview
Houzit is the national retail brand which its organization’s strategic is catering to the needs of home makers with a range of unique, high quality homewares made accessible to all through their easy to manage payment plan. This organization’s direction is to have a significant retail presence in homewares in every Australian capital city, by starting with 15 stores in the greater Brisbane area and growing to 100 Australia wide. Their objectives are to increase the organization’s sale from 15 million per year to 20 million per year in the next three years. Moreover, they also wanted to increase their loyalty customers list from 10000 to 15000. Lastly, the organization want to establish their brand recognition in Brisbane so that at least 1 in 3 people recognize Houzit in a random survey taken in 18 months’ time.
Houzit’s current size is having 15 stores in Brisbane. The capabilities of Houzit is having excellent staff who are highly skilled and knowledgeable about homewares, great retail space which is bright, functional and efficient for a commercial urban direct and assortment of offerings that exceed
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Since the sense of value chain analysis is to increase the value of a products or service. Value chain analysis is just breaking the whole operation processes into stages to identify which in stage we can do better or we can change it to become better. With the primary activities of inbound logistics, operations outbound logistics marketing & sales service and the support activities of procurement of purchasing, human resource management, technological development and infrastructure, we can easily get the margin which is referred to the
The company that I chose to research for my company profile paper is on the clothing store Francesca’s. Francesca’s is a boutique like store that contains different women’s fashion trends that range from clothing, jewelry, and shoes. Francesca’s also offers specialty items and gifts that include candles, wall art, and gag gifts (Coltrin, 2010). The reason I chose Francesca’s for this project is because this store interests me. I first started shopping at this store when I was about sixteen years old. The store quickly became very popular for my friends and I as the store offered something that we had never seen before; boutique items for reasonable prices. Francesca’s is becoming increasingly popular among women of all ages that are looking for fashionable one-of-a-kind items without breaking the bank.
One of Amazon’s main focuses is to create value for it’s customers. To do this, their number one strategy is to exceeding customer’s expectations. Amazon does a lot of little things very well. These little things are often overlooked by other retailers and, as a result, create customer loyalty for Amazon.
In business, the mantra that success comes to those who can recover from setbacks is widespread all over the world. One of the organizations that poignantly illustrate this element is Costco. Costco is a warehouse firm that was founded in 1976 in San Diego. Although many people may envy the company as its owners enjoy huge success in the warehouse and retail industry, what the majority of individuals do not know is that in the first year of operations, Costco lost $750, 000, but after 3 years, the company had $1miilion in profit, 900 employees, and 200000 members. This shows that in business, the strategy can be the difference between success and failure. This essay describes how Costco has undergone evolutionary changes from its inception
The value chain analysis can be examined as to whether they provide opportunities for differentiation or cost reduction. According to Porter, the value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage by following one of the two strategies:
Royal Caribbean Cruise Ltd (RCCL) has two distinct supply chains which create a unique challenge. Each supply chain is managed by a Provision Master. The first supply chain includes all food, beverage, and lodging inventories that needed for the trips. The second supply chain encompasses “corporate spend” materials, such as office supplies, printing services, hardware and software, printed materials, computer supplies, marine consumables (spare parts, fuel, lubricants, any and all services associated with the ship maintenance and etc).
The first impression one might have about Crocs' products are that they are basically plastic looking shoes that are comfortable and readily available. Customers familiar with this product boast, like on the company website, about "the company’s proprietary closed-cell resin, Croslite™, a technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities"(Company.crocs.com, 2011). There are also various comments about how the material does not slip when exposed to water and of the popularity of the shoes since their "first sale in 2003"(Hoyt & Silverman, 2008, p.13). Over the last few years, the popularity of the shoes have dropped off and the purpose of this study is to present an analysis of the company's value chain and determine what changes I would incorporate and why.
The external environment has been analysed in previous sections, Appendix E lists internal capability and resources of Burberry by using porter’s value chain model, the VRIO framework will also be used to test whether the brand adds value by such activities or not.
The aim of the value chain structure is to maximize the value creation while minimizing costs. Value Chain Analysis is a useful tool for working out how you can create the greatest possible value for your customers. Value chain analysis relies on the rudimentary economic principle of competitive advantage -companies are best served by operating in divisions where they have a relative prolific benefit compared to their competitors. Concomitantly, companies should ask themselves where they can deliver the paramount value to their customer. To conduct a value chain analysis, the company begins by identifying each part of its production process and recognizing where steps can be purged or enhancements can be made. These improvements can result
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
Kotler, P., & Keller, K. (2012). Marketing management (14th ed., Global ed.). Boston, [Mass.: Pearson.
Michael Porter coined the definition for value chain analysis also called as value chain in the year 1984. He believes that the effectiveness
Armstrong, G, Adam, S, Denize, S, Kotler, P, 2010, Principles of Marketing 5th Edition, Pearson Australia Group, Frenchs Forest
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McDaniel, C., & Gates, R. (2006). Marketing research (7th ed.). Hoboken, NJ: John Wiley & Sons.
By adopting the value chain into a manufacturing company, it will gain efficiency, effectiveness, reduce the product cost and improve continuously. For example, Toyota has implemented Toyota Product System (TPS) integrated information system with the business process which allowed the company to be more efficiency, effectiveness and reduce inventory cost. (Toyota