Value Chain

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Value Chain : 

1 Value Chain

Strategies, Forces, and Tactics in Competitive Markets : 

2 Strategies, Forces, and Tactics in Competitive Markets c. Strategies: Differentiation Develop products & services which are different from what the competition offers superior attributes distinguishing features

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3 Competitive Strategies Competitive Advantage Competitive Scope Lower Cost Differentiation Broad Target Narrow Target Cost Leadership Cost Focus Differentiation Focused Differentiation

Strategies, Forces, and Tactics in Competitive Markets : 

4 Strategies, Forces, and Tactics in Competitive Markets Cost leadership based on efficient operations based on effective operations economies of scale become a low cost producer market segmentation (niche) Focused differentiation Market niche Cost focus narrow market & low cost

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Value Chain Analysis of Strategic Opportunities : 

8 Value Chain Analysis of Strategic Opportunities Definition: Value chain- consists of the major activities that have been added to the product during its creation, development or sale. Primary activities : the creation of product or service inbound logistics - order entry data collection, obtain raw materials, subassemblies Operations - order processing, MRP; transformation of inputs to finished goods

Value Chain Analysis of Strategic Opportunities : 

9 Value Chain Analysis of Strategic Opportunities Primary activities : the creation of product or service Outbound logistics - distribution & sales data; storing products, Marketing sales - promotions, discounting; establishing a customer need Service activities - calls, returns, product rotation and maintenance

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10 Value Chain with Typical Strategic IS Mapped onto it EDI-Based Purchasing System Computer- Integrated Mftg. Automated Ordering System Expert Systems for Salespeople Telemaintenance Expert Systems Inbound Logistics Operations Outbound Logistics Marketing and Sales Service Downstream Chains of Customers Upstream Chains of Suppliers

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Value Chain Analysis of Strategic Opportunities : 

12 Value Chain Analysis of Strategic Opportunities Support activities: The required infrastructure Org's infrastructure Human resources Technology Procurement

Value Chain Analysis of Strategic Opportunities : 

13 Value Chain Analysis of Strategic Opportunities Z-1992 fig 5.5 & 5.6

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Strategic Systemsin Operations : 

15 Strategic Systemsin Operations A. Manufacturing CIM MRP II

5.6 Strategic Systemsin Operations : 

16 5.6 Strategic Systemsin Operations Z Figure 5.7 p166

Strategic Systems in Operations: Manufacturing : 

17 Strategic Systems in Operations: Manufacturing

Strategies for CIM and BRP : 

18 Strategies for CIM and BRP Fjermestad & Chakrabarti, 1993

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