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Value Chain Analysis

Category: Business Statistics Paper Type: Coursework Writing Reference: APA Words: 1949


Here we e going to discuss the value chain strategies of KSA organization named Mobily. Etihad Etisalat develop the second mobile operator in the Saudi Arabia which is going to recognize by GSM world association as the fastest growing operator in the North Africa and middle east region. In launching the 4G –LTE worldwide, Mobily is known as first operator which also provides unlimited packages. With the high-speed downlink packet access technology, they offer unlimited data packages. so, it maintains it position in the whole technology sector as very innovative and niche service provider. Mobily give extreme focus on the customer requirements and their demands and fulfill their expectations.

Value chain of Value Chain Analysis

Value chain is the complete information of all the functions or activities which are performed in any organization from inputs to outputs. So, the value chain analysis is considered as complete process that defines all the activities involve in the organization from first step to final product and observe how the differentiations going to increase and cost going to be decrease. So, the value chain analysis is also known as strategy tools that provide complete support to get better competitive advantage. This analysis also supports the organization that how the organization has to perform in the most better way to get maximum advantages by minimizing the costs and maximizing the benefits or advantages (MacIntosh & Maclean, 2014).

Normally porter’s value chain model is used in the organizations that clearly explain all the internal activities that perform the final results and support the activities by adding the value.

Primary activities of porter’s value chain model are inbound logistics, operations, outbound logistics, marketing and sales and services.

Supportive activities of value chain model are firm infrastructure, human resource management, procurement and technology (Grant & Jordan, 2015).

In the current situation, competitive advantages can be obtaining from the innovation or technology improvement in the business processor models. So, research and development area is normally belong to supportive activities that is major source of differential advantages and with this the primary activities are mostly helpful in maintain the costs related to all activities .so organization want to get maximum cost and differential advantages. Cost advantage means that organization wants to get maximum profit by minimizing all its costs or expenditures and observe all the factors that become the cause of high costs. Differential advantages mean that organization has to produce such product that provide more innovative and supportive facilities to their users in the comparison of other products by using differential advantages approach.

Value chain analysis of Mobily of Value Chain Analysis

In the telecom and information technology sector in Saudi Arabia, Mobily is the pioneer that become the fastest growing company and develop a well-known brand in the telecom sector. Its leadership strategies are present as inspiring source in sustain the competitive change and redefining concepts at international, local and regional level. The social responsibility concepts going to be change dramatically with its leadership sustainability. In individual, business and carriers’ sectors, Mobily provide integrated services and maintain the largest wireless network coverage in the region and kingdom .it offer biggest data center system with widest FTTH network. it also gets awards for excellent infrastructure technically that provide more innovative path for better data transmission.

Why the value chain of Mobily deliver expected values of Value Chain Analysis

Mobily work on the vision that driving business growth and boosting average spend with personalized marketing. So, for increasing its growth, Mobily wants to attract and inspire more and more customers to use their data services for mobile. and for getting more attention of their customers, Mobily give more focus on customer segment more accurately that handle all the issues of customers and provide them excellent services (Grant & Jordan, 2015).

So, IBM Watson Customer Engagement solution provide better strategies to Mobily that help to determine the preferences of customers and explain the segment of fine grained that properly support its marketing team that provide all offers on every channel that are major targets of customers. So, after that techniques, the Mobily get the results that are increase the per mobile user average revenue, delivers millions of dollars in financial benefits and decrease in delays by using more advance and latest predictive models.

So, by using such important strategies the Mobily can capture the 45% market share of domestic mobile market. The main value chain elements of Mobily is belong to its customers, marketing, services and new and well-developed technologies. In the sector of telecom and information, customers want to get more and more information from all over the world in minimum time frame and without any disturbance. Therefore, Mobily give more and more attention and complete focus on its services that are major requirement and demand of customers.

More and more attractive marketing techniques also used by organization to capture more and more customers because with the passage of time, the customers’ demands are going to change and they want quick and easy answers to all their solutions, they want to get connected with their families in the minimum time period in all over the world so Mobily give maximum respect to the demands of all the clients and consider their requirements. Mobily try to establish its data transmission sectors in all over the world to provide more and more better facilities to all its customers.

Innovative marketing techniques and also different sorts of offers also given to its customers that increase the expenditures of customers and their extra expenses and become the cause of increasing revenue of organization. In the service industry only, that organization can earn more profit who maintain its customer’s relationship and offer all the demanding offers to them. With excellent customer relationship, Mobily also maintain good relationship with its employees because without their efforts organization never gain the customer attention and maintain its highest position in the market of telecommunication.

Porter’s value chain model provides maximum support to organization to determine the best path to getting more attention to all its customers and get more and more profit (Grant & Jordan, 2015).

How Mobily get more success in its value chain areas of Value Chain Analysis

The aim of business is to enhance its margin linked with work and the great worth of inputs and outputs is to observe the profit margin of the company. The reason behind this scenario is very easy that is when the organization want extra profit then it has to handle with extra worth the improved worth is moved to different shoppers and provide more support in consolidating the competitive edge of the company. The activities of business related to value chain are included in two different procedures; the major and supporting activities. The major activities are smoothly belonging with the development of service or honest whereas the supportive procedures provide support in improving the potency and among peer, perform to the competitive advantages. (for connected study, see “Industry handbook: five force analysis of Porter”)

In the product commercialism, there a little bit or almost not the [presence of intermediaries. In licensed store solely or their own the bulk of product are oversubscribed. According to latest venture, the corporate has offer a spread of coffee of single origin that is going to be oversubscribed  with the support of leading retailers in the U.S. that additionally invest in the product of superior quality and client service of high level  as in promoting aggressively (MacIntosh & Maclean, 2014).

But by the corporate, need based promoting activities are distributed throughout the launched of new products, in areas round the stores within the variety of sampling.

Through its claim’s customers’ services Starbucks aims at building client loyalty. Starbucks retail objective is mention in its annual report that “whole of low and to be the leading merchandiser in all the targeted markets by commercialism providing every client a singular star bucks expertise, connected products and best quality coffee.

Starbucks is extremely well-known to be used of technology, not only for processes related to coffee (to continuous guarantee in its quality and style with the value saving together) however to attach with customer’s likeness. It conjointly explains that if price is intercalary throughout every step, the price of the merchandise gets increased so serving to in achieving bigger profit margins. Back in 2008, the corporate launched a platform wherever customers may raise queries, offer suggestions and brazenly specific share experience and opinions; the corporate must enforced a number of the opinions, as well as reward program is consider its actual reason (MacIntosh & Maclean, 2014).

Apple’s iBeacon system used by Starbucks conjointly uses, where by a notification of its readiness once they go into the shop  and customers will order a drink through the Starbucks PhoneGap (Grant & Jordan, 2015).

The construct for import chain facilitates to grasp and identified the useful (which support in obtaining a competitive edge) and activities of waste material (market lead pump) attendant every step throughout the merchandise development method.

Many purchasers use Starbucks stores as makeshift workplace or facility due to the free and unlimited local area network. The committed force is taken into account a major element over years for the growth and success of company. There are many types of programs of coaching taken for the benefit of workers for settlement of culture that help in motivating its employees and at economic level. The employees of star bucks are very much impressive with the different incentives and sort of edges. Nice human resource management indicated because of care force of corporate for workers and key reasons of turnover of coffee (MacIntosh & Maclean, 2014).

Conclusion of Value Chain Analysis

At the end of the above discussion we conclude that item is tested when a new product of brand id belongs to or known as a n upgrade in the existing product to complete the demands of customers, rearrange its specifications and transfer for the making. in that corporations, where the product is considering the service unique designing methods going to be applied. And when the factory is going to produce the product, it’s worth and value going to increase. Apostle Feller, Dr. Dan Shank and Dr. Tom Call Arman noted while writing different business methods and trends, explain that

At the small level of business, many dealings are happening by directly deal with the suppliers to provide new product launched in the market. We can conclude our discussions that chain management of price is highly focus on the demand of customers. The menstruation of shopper trends and with careful research of market. The company follows the requirements of all its customers and merchandise also offer the required product.

In the value chain, the distribution system is very much important and warehouse where products are going to distributed. Proper data system, packaging, transportation, communication and material handling is imposed by the customer by its merchandise. Physical locations are also very much necessary like stores or warehouses for remain vital in the digital age of distribution or provision management. And any sort of distribution channel is going to use for the betterment of business. Obtaining the merchandise for all customers means which coaching your staff to grasp everything follows it, giving opinion customers the way to use the merchandise, troubleshooting and identification and providing cooperative service. This main link within the given chain is prepare as required and is employed by management at senior level to determine client attitude.

References of Value Chain Analysis

Grant, R. M., & Jordan, J. J. (2015). Foundations of Strategy. John Wiley & Sons.

MacIntosh, R., & Maclean, D. (2014). Strategic Management: Strategists at Work. Macmillan International Higher Education.

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