When the company knows its inefficient activities and cost drivers, it can plan on how to improve them. The best combination of them should be used to pursue sustainable differentiation advantage. This is because the source of differentiation advantage comes from creating superior products, adding more features and satisfying varying customer needs, which results in higher cost structure.
For example, fewer components in the product design may lead to less faulty parts and lower service costs.
Value Chain Analysis Primary Value Chain Activities Inbound Logistics and Outbound Logistics The main inputs for Google are its talented employees who produce the profitable ideas for the company and outputs are the cash generating applications for internet users, such as Gmail, Google Scholar, etc aimed at making information accessibility and advertising innovations such as Google Adsense etc which are its main source of Analysis value chain google inc Business Week, Where Google, follows the traditional work procedure for human resources, finance and operations, the rest of the work which falls under the software engineers and marketers is solely based on innovation where employees are free to develop their own way of working Schermerhorn, Conducting the analysis According to an article on Strategic Management Insightthere are two different approaches to the value chain analysis: This is based on their strategic staging and pacing with the technological advancements Farrel, For a more labor-intensive activity, cost drivers could include how fast work is completed, work hours, wage rates, etc.
Identifying the activities that create the most value to customers is the priority. As the organization grows, its challenges and opportunities grow with it Curtis, The managers who identify value chain activities have to look into how work is done to deliver customer value.
A business begins by identifying each part of its production process, noting steps that can be eliminated and other possible improvements. By analyzing and evaluating product quality and effectiveness of services, along with cost, a business can find and implement strategies to improve.
Although, primary activities add value directly to the production process, they are not necessarily more important than support activities. The total costs of producing a product or service must be broken down and assigned to each activity.
Too high wage rates can be dealt with by increasing production speed, outsourcing jobs to low wage countries or installing more automated processes. Human resource management includes the activities involved in hiring and retaining the proper employees to help design, build and market the product.
Sometimes, cost reductions in one activity lead to higher costs for other activities. Reduction of costs in one activity may lead to further cost reductions in subsequent activities. For this reason, having to deal with two or three suppliers is just a burden.
Usually, superior differentiation and customer value will be the result of many interrelated activities and strategies used. Focusing on customer service, increasing options to customize products or services, offering incentives, and adding product features are some of the ways to improve activity value.
Operations Google is a company operating in the information age and is a leading provider of information services to clients. Costs for labor-intensive activities will be driven by work hours, work speed, wage rate, etc.
The economic outputs of pursuing such a business model are: Goals and outcomes Ideally, value chain analysis will help identify areas that can be optimized for maximum efficiency and profitability.
Identify opportunities for reducing costs. The cloud computing technical capability is embedded in the business model of Google, which allows it to handle bank loads of information and data and offer services to its billions of clients worldwide Curtis, The culture resembles that of campus life where the students are free to do what they like but submit projects on time.
VC is formed of primary activities that add value to the final product directly and support activities that add value indirectly.
Google invests considerable amount of time, money and effort to continually progress its technological capabilities centered on increasing internet security, faster download, more innovations that generate more revenues and render customers satisfied from using its services and more applications to attract more customers.A value chain is the full range of activities that businesses go through to bring a product or service to their customers.
Here's how to conduct an analysis of your own. Value chain analysis of Google Inc. Google is an undisputable leader of the IT industry, with developments in both software application, as well as hardware devices.
The operations of the company have ensured it tremendous success within the international market place, but. Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e.
are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage. Google Strategy & Business Model 1.
Content Company profile PEST analysis Five forces analysis Value chain Canvas model Core problem Differentiation matrix Canvas model +5 Strategy. Google Value Chain Analysis: Benefiting from No-Cost Inbound Logistics Posted on June 7, by John Dudovskiy Google value-chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business.
Feb 03, · Google And The Future Of Supply Chain. What it means for the future of supply chain is a speed up in all the disruptive and Google drives innovation back up the high tech value chain.Download