The Value Chain Analysis Of Banglalink

Value Chain Analysis is a theory first given by Michel Porter. According to him it is a useful tool to find out how a company can create superior value for their customers. He also suggested that the more value a company can create, the more people will be prepared to pay a good price for their product or service. So every company should make some strategic decision how they can improve their value chain. For Banglalink it is very critical that, they should understand their value chain carefully. Because if they can add some value in their existing services, customer will pay more to their services.
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

• The value chain analysis can be demonstrated the weaknesses and threats of the company quickly and accurately. It also helps the managers of the company to develop an effective strategy, and shows them how to develop the strategy. Porter, M. E. (1990). Value chain analysis model helps an organization to understand the organizational issues involved with the promise of providing customer value and promises. It mainly focuses on the creating a good value proposition.
• This strategic model helps a company to investigate the cost structure of the company. Furthermore, managers also find the opportunities for specialization of their products. Porter basically focuses on analyzing the activities that creates a competitive advantage and then the necessary steps to implement those.
• This model demonstrates that the company need to analyze only direct competitors, not all companies competing in the sector. This model is also a clear example of how to make a product, taking into account all the phases through which the product passes. Thompson, A & Strickland, J. A.

It might take a lot of work to finish a full value chain analysis for a company. A company need to give a lot of effort so that they can identify and understand the key differences and strategy to establish this model for their business. This is not a short term tool. Pearson, G. (1999)
• The value chain idea has been implemented by supply chain and operations experts. Therefore its strategic impact for understanding, analyzing and creating competitive advantage has been reduced.
• Moreover, the value chain analysis only direct rivals. It ignores the threat of potential new entrants, or new substitute products from other company. As a result if a company inly rely on value chain analysis they might fall in danger.
• According to Value chain analysis, competitive advantage cannot be assumed by looking at the company as a whole. The benefits derived from the many isolated activities, a firm preformation, the design, production, marketing, supply and product support. Each of these activities may contribute to the relative cost position of the company and create a basis for differentiation.

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