Value chain mapping

Found an interesting article by Justus & Sunitha in ‘Indian Management’ magazine. Article ‘Mapping the value chain’ highlights that assessing a company’s competitivness requires an understanding of the entire value chain system and not just the company’s own value chain.

 

Here are the bullets.

 

1-Input minimization

 

American airlines leaves aircraft surfaces unpainted.

Air Asia implemented a faster turnaround time.

Jetlite cut food items.

 

2-Alternative production process

 

Modified Solvay process for making Soda ash, with byproduct fertizer Amm. chloride

 

3- Tackling raw material shortage

 

Developing expertise in fermentation technology by Pfizer

 

4- Raw material quality

 

Vertical integration into steel by Timken, a bearing manufacturer.

 

5- Local customs and culture

 

Fish tanks by Walmart in China

 

6- Raw material from waste

 

Wealth out of Waste (WOW) scheme at ITC

 

7- Service

 

Eternity by Exide

 

8- Human relation

 

Contractual employment by Asia Motor works on the lines of oil-rig business

 

9- Technology

 

China Unicom low call charges for international calls

 

10- Marketing

11- Internet

 

1800flowers.com

 

12- Inventory turnover

 

Mulchandani of Baron Internatinoal borught down price of TV sets in India.

 

13- Supply chain

 

14- Erection cost

 

Second hand plants by Vedanta

 

15- Support facilities