According to the information from Navico’s Case. Navico a Margate-based maker of marine communications and instrumentation equipment had growth from nothing to a respected position in the British market over six years. Mr. James Flynn OBE, the managing director of Navico realized that the business seems to have stopped growing since then. The following are the elements of Navico’s value chain that conferred a competitive advantage and allowed them to see a real-terms doubling of turnover, big increase in market share and a big jump in profitability.
Value Chain has two parts, primary activities and support activities. Primary activities include inbound logistics, operations, outbound logistics, market and sales and service. Support activities include procurement, technology development, human resource management and firm infrastructure.
Five Primary activities:
Inbound logistics – The priorities and completion dates for all orders are public knowledge for everyone in the factory. Cell members take responsibility for setting their own schedules, revising the prominent wall-mounted order board each time an item is completed and taken to dispatch. The growth has shown how important this can be to the efficient operation of a company, and the management of its suppliers and their quality.
Operations – Investment in training enables multi-skilled staff to move between cells in response to widely variable levels of customers demand. They identified key commitment to the company and greatest commitment to the company. They took 20 out of the 80 staff who didn’t score well. At this stage value can be added beyond the normal capital and manpower inputs by the maintenance of high quality, flexibility and design.
Outbound logistics – Carry the product from the point of manufacture to the buyer. At this stage, value can added through quick and timely delivery, low damage rates and the...