The World without Bankruptcy Laws
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
The concept of the value chain was introduced by Michael Porter. The concept helps categories’ activities undertaken by enterprise to deliver a successful product to a customer. The concept since its introduction in 1980s has become a forefront in developing strategies around customer delight and commercial success.
The value chain is series of activities undertaken by organization to deliver a product to end users. Here the concept does not apply to one single manufacturing organization, but it also applies to the players in the value chain. One of the purposes of the value chain is to understand activities, which add value during creation of the end product.
Enterprise undertakes several primary activities as well as secondary activities to deliver the final product to customers. Here primary activities are defined as activities, which directly support production of product or service. Secondary activities or support activities are activities which primary activities.
Primary activities in the value chain are directly related with the production and delivery of the final product. The objective of these activities is adding value to product that is more than the cost of product. This will ensure that company can generate healthy margin and stay in business. Primary activities mainly consist of inbound supply chain, operations, dispatch, sales and marketing and service.
Inbound supply chain is made up of activities like receiving raw materials, storing raw materials and inventory management.
Operations consist of activities which convert different raw material into final product.
Dispatch activities consist of sending final product to distributors, retailers etc.
Sales and Marketing activities includes promotion of products to potential as well as existing customers, networking with channel partners etc.
Service consists of activities like solving customer issues before the sale of the product as well after sale of the product i.e customer care or customer support.
Commercial value chain is defined as any value chain used to achieve its organizational goal. Every company in any given industry will have its own value. However objective all the different value chain is to add value chain at every stage till product is delivered. The value chain of business includes activities:
Potential Customer Attraction and Existing Customer Repeat: For online business it is very important that they are able to generate visitors for their website. This will ensure customers are aware of available products and pricing. Companies also want to ensure that website is able repeat customers also.
Customer Interaction: Website design and navigation should ensure that potential buyers are able to reach the required web page. Another option available is customers entering their requirement and website displaying potential products.
Order Processing and Payment: Once a potential buyer has selected the product, website should be equipped to display other product similar to purchase or pop a question whether customer would be interested in making another purchase. Purchase order should also highlight possible shipping date and number of days before product will arrive. After purchase transaction, the next important step is payment through secured fund transfer.
Order Delivery and Customer Care: Website should be able to provide online tracking of the product; it should also provide details about possible delays. Website should be equipped to solve any queries online through frequently asked question, email support etc.
Your email address will not be published. Required fields are marked *
Why are Companies Constantly Upgrading their ERP Systems?
February 7, 2025
It’s Now or Never: Why Business Must Embrace Sustainability before it is Too Late
February 7, 2025
The Pharma Sector and Intellectual Property Rights: Pros and Cons
February 7, 2025
