Use of Internet in Value Chain Analysis with example

Started by TechShristi, November 10, 2015, 12:00:52 am

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November 10, 2015, 12:00:52 am Last Edit: November 10, 2015, 12:17:04 am by TechShristi

Hello all

Before stating 'How internet is used in the Value Chain', let have a look over the What is Value Chain?

QuoteA value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or for the market.The concept comes from business management and was first described and popularized by Michael Porter.

So in simple words it is a process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.

Now, let discuss how internet is used in this value chain activity.

Primary Activities

Inbound Logistics: arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

This retail link provided a real time information to its vendor. You can easily access the various information related to your company from this website easily. Wal mart Retail Link Login page

Operations: concerned with managing the process that converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services)

Airline companies like, Make my Trip etc are managing a streamline process online.

Marketing and Sales: selling a product or service and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

P& G: P&G allow their product as freebie after registration on line to test their product

Outbound Logistics: is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end userDell use to sell directly to there customer (home based, small and large enterprise)

Service: includes all the activities required to keep the product/service working effectively for the buyer after it is sold and delivered.

After sale services: Transcend allow their customers to register their product online for life time warranty

To avoid long post, we have provided the secondary activity in the second post below


November 10, 2015, 12:00:52 am Last Edit: November 10, 2015, 12:17:04 am by TechShristi


Secondary Activities:

Technological Development: pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs.

TATA Nano: Using interactive Dealer Locator Application

Human Resources Management: consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel.

IBM using web based training for there employees

Infrastructure: consists of activities such as accounting, legal, finance, control, public relations, quality assurance and general (strategic) management. In simple its a general administration.

Please refer below for more example and ppt presentation of this article


Some more example:

Download PPt Presentation of this article

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