The Value Chain of Porter
A value chain describes the categories of activities within and around an organisation, which together create a product or service.
The value chain is a set of steps whichdeterminate the capacity of a company to obtain a competitive advantage. There are 2 kinds of activities:
- The primary activities which participate directly to the creation and the selling of theproduct.
- The support activities which help the main activities and form the company's infrastructure.
PSP's value chain is better in technology environment. In fact, PSP's technicians createda machine for cutting and working of the metal rods which reduced the cost price. There are a lot of technological barriers.
Furthermore, PSP produce its own products. In fact, PSP bought Schmittand Brendel. So PSP became the manufacturer of a finished, decorative product.
Direct Duties of a firm :
Purchase Production Logistics Marketing-sale Service
-Purchase of plastic and metalcomponents: China -2 places : France and China
-Production integrated (acquisition of his wood subcontractor and his main assembly consumer B&C) -Flux control -Marketing service (created in 2000)-Participation in three trade shows
-High reputation -Customer Service of high quality
Support Duties of a firm :
Financial Support Human Resources Technology Resources Organizational Resources
-Firmsquoted in stock exchange
-Firms which have shareholders
-Possessed Customer debts
-Possessed Financial Debts
-Possessed Supplier Debts -R&D Service: managed by Maurice Lauzet with 14 persons-Marketing Services: 3 persons
-Sales : 11 persons
-1 Sales and Marketing Manager
-1 CEO -Good service R&D
-Technology based on innovation and design -Creation of marketing and R&D department-Organization structured of sales : France and Export
-Repurchase of a factory in Quingey
-Integration of activities contracted out.
Organization into a hierarchy of resources and abilities
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