Chain of value
14 September 2009 - 16:13
The chain S-value a tool of management designed by Michael Porter who allows to realize an in-core analysis of a company, through its breakdown in its main generating activities of value.
Value chain is denominated, because it considers to the main activities of a company like the links of a chain of activities (which basically form a process made up of the design, production, promotion, sale and distribution of the product), which are adding value to the product as this one happens through each of these.
This tool divides the generating activities of value of a company in two: the primary activities or of line and the activities of support or support:
Primary activities or of line
They are those activities that directly are related to the production and commercialization of the product:
- Logistic interior (of entrance): activities related to the reception, storage and distribution of the consumptions necessary to make the product.
- Operations: activities related to the transformation of the consumptions in the end item.
- Logistic outside (of exit): activities related to the storage of the product finished, and the distribution of this one towards the consumer.
- Marketing research and sales: activities related to the act to give to know, to promote and to sell the product.
- Services: activities related to the provision of complementary services to the product such as the installation, repair, maintenance.
Activities of support or support
They are those activities that add value to the product but which directly the production and commercialization of this one are not related to, but rather they serve as support the primary activities:
- Infrastructure of the company: activities that support to all the company, such as the planning, the finances, the accounting.
- Management of human resources: activities related to the search, hiring, training and development of the personnel.
- Development of the technology: activities related to the investigation and development of the technology necessary to support the other activities.
- Supplying: activities related to the process of purchases.
Releasing a company in these activities allows to realize a better in-core analysis of this one, allowing, mainly, to identify existing and potential sources of competitive advantages, and to include/understand better the behavior of the costs. And, that way, to harness or to take advantage of these competitive advantages, and to find forms to diminish these costs.
Generally, the later objective of the tool of the S-value chain to try to generate the greater possible value in each one of the released activities, and at the same time to try to diminish the costs in each of these; looking for, that way, to obtain the greater margin of possible utility.
Labels: Concepts, Management of businesses, Tools of business
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