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Value Chain
"A business model that focuses on the progression of activities that a firm operating in a specific industry performs in order to deliver a valuable product to the end customer."
Primary Activities
Primary Activities
Primary activities consist of five components, and all are essential for adding value and creating competitive advantages:
Inbound logistics is where purchased inputs such as raw materials are often taken care of, and where there is contact with external companies such as suppliers - in Zespri's case, growers.
Recieving, storing, and disseminating inputs to the products are all activities that are part of inbound logistics.
Operations convert the inputs into the desired product, when all the required materials have been collected. The factory converyer belts are typically used in this stage of the value chain and production.
Trasonforming inputs into the final product form is the activity associated with operations. This is in the forms of packaging, assembling products, testing, printing, and facility operations.
Outbound logistics is where the final product is finished and completed, however it still needs to find it's way to the customer. Product is either shipped instantly or needs to be stored for a while depending on how lean the company is and the product's stocking needs.
Collecting, storing, and physically distributing the products to consumers are activities that are associated with outbound logistics. Examples of this are in material handling, delivery operations, order processing, and scheduling.
Marketing and sales are crucial to the success of the business' product. Potential customers are needed to made aware of the product and be seriously conisdering purchasing them. The sales and marketing team focus on benefits and value of the item to the consumer and this increases a consumers chance of purchasing their product.
Activities that are assocaited with marketing and sales are to provide a means by which buyers can purchase the produce and influence consumers to do so. This can be done by advertising, promotion, channel selection and relations, pricing, sales force, and quoting.
After-sales service plays a crucial role in businesses in todays economy. Unsatisfied customers end up with complaints that easily spread via the internet or word of mouth. The consequences of this most likely fall back on the company's reputation negatively. Therefore is it important to value customer service and companies to have proper practices in place.
Providing service to enhance or maintain the value of the product after it has been sold and delivered is a vital activity. Examples of this is installation, training, product adjustment, parts supply, and repairs.
Support Activities
Support Activities
The role of support activities is to help make the primary activities more efficient through coordination. When the efficiency of any four support activities is increased, it benefits at least one of the five primary activites:
Procurement
Research and Development
Human Resourcing
Firm Infrastructure
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