Value Chain Analysis

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VALUE CHAIN ANALYSIS
Value Chain Analysis describes the activities that takes place within and around a business and relates it to the competitive strength of the business. According to Michael Porter who introduced the value chain analysis concept suggested that the activities which an organization carries out adds value to the services and products which it produces. In order for a business to gain competitive advantage, their activities should be directed at its optimal level efficiently so that the value obtained will exceed the organizations cost of operating. A company’s value chain comprises of two extensive groupings of activities, the primary activities which are directly concerned with creating value for customers and then there are the support activities that facilitate and enhance the performance of the primary activities. Value chain incorporates the entire organization. It looks at how primary and support activities work together to help the organization create a superior competitive advantage. Laparkan Shipping Company has different services that they use to distribute shipments to their customers. They are involved in transportation logistics, port operations, retailing and the travel industries. Laparkan Airways Incorporation, which is a registered all-cargo carrier offers weekly schedule and chartered cargo flights from Miami to the Caribbean Markets. Laparkan Air Freight offers an array of products from Courier Service, Door to Door and Private Mail Box services for Internet Shoppers. Some of their other services include Warehousing, Palletizing, Crating, Certified to handle Dangerous Goods and Weekly Consolidations to the Caribbean. The Sales and Marketing efforts in a value chain analysis ensures that the product is targeted towards the correct group of customers and buyers and customers are informed about products and prices. At Laparkan, production is linked to marketing ensuring that customers’ goods are met on a timely basis. Their...
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