Use michael porter s analysis to assess value chain of huawei

Aug 6 comments The Sale of Goods Act covers the purchase of most things from shops, suppliers and online or mail order retailers.

Use michael porter s analysis to assess value chain of huawei

Adding value to a product passing through a chain of activities is called Porter's value chain after Michael Porter for his discussion of it in Competitive Advantage: Creating and Sustaining Superior Performance.

Use a value chain example to improve your business and to build a value chain model. A value chain is a chain of value added activities; products pass through the activities in a chain, gaining value at each stage.

As a small business owner, you need to use value chain models for doing strategic cost analysis which investigates how your costs compare to your competition's costs. Strategy is your business' direction; and the how, why, what, who and when of following that direction.

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Your strategic small business plan needs to include the chain analysis results as strategic action items. Most businesses analyze their own internal cost structures but most do not analyze their competitor's structures. This type of industry analysis will be invaluable for developing and implementing new competitive strategies.

If you are operating in an industry where most competitors are publicly traded, you will be able to access most of their financial statements through their mandated public annual reports.

For example, you might have recruited employees who've worked for your competitor and they've told you that they are earning a dollar an hour more with you for the same job they did with the competitor. Or you scan the online job boards for your competitors' job postings.


Labor costs are often a large overall cost in most businesses - at least, you will be able to estimate if they are higher or lower than you. The value chain identifies, and shows the links, or chain, of the distinct activities and processes that you perform to create, manufacture, market, sell, and distribute your product or service.

The focus is on recognizing the activities and processes that create value for your customers. The importance of value chain analysis is that it can help you assess costs in your chain that might be reduced or impacted by a change in one of the chain's processes.

By comparing your value chain to your competitors, you can often find the areas or links of the chain where they might be more efficient than you; that points the direction for you to improve.

Use michael porter s analysis to assess value chain of huawei

However, you need to understand that the value chain will be influenced by the type of small business strategy you and your competitors follow: Understand how those differences influence your analysis and make sure that your business strategy is in-tune with your market and with your strategic objectives.

Expect your competitors to have a value chain quite different than yours; because their business grew from a different set of circumstances and a different set of operating parameters than your business. How to do a Value Chain Analysis: I like to do this type of analysis in a spreadsheet, so that I can add, delete, amend, and sort easily and see the comparative data clearly.Strategic Analysis Tools Topic Gateway Series 1 Strategic Analysis Tools • value chain analysis • early warning scans Four corner’s analysis Developed by Michael Porter, the four corner’s analysis is a useful tool for analysing competitors.

It emphasises that the objective of competitive analysis. Two value analysis approaches are discussed. The first approach is taken from Michael Porter’s horizontal value chain analysis emphasizing the ways to assess value-added activities from internal activities across the horizontal departmental value chains of an organization.

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Use michael porter s analysis to assess value chain of huawei

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Be it enacted by the. The Sale of Goods Act covers the purchase of most things from shops, suppliers and online or mail order retailers. It also details the retailers obligations in situations where you have to return an item to them take on the basis that it is damaged or faulty – or both.

Value Chain Analysis | SMI