Such activities allow us to generate resources for successful development in the occupied market segment and ensure sustainable competitive advantages.
it is possible to identify simple and unique processes (CSC links) that are characteristic only of a specific business.
In order to correctly form the target audience's need to purchase the company's product, it is necessary to understand the features of Michael Porter's value chain. This model demonstrates the competitive advantages of the enterprise's offer and its value to the consumer. In situations where the manager does not have a clear understanding of how the company's product satisfies the customer's needs, its sales are carried out solely on the basis of cost. At the same time, in a competitive environment, a low price is not always the main advantage. To determine the value of the proposed product and form an effective sales strategy, it is necessary to analyze Michael Porter's VSC model.
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Typical and global value chains
The production activities and distribution processes in a company can be classified into one of two types of CSP: typical or global.
The first type of model takes into account the business activity of process participants within one enterprise or region. For example, for a small company that operates exclusively in one locality, a typical CSC should be used. The same model is used in a large corporation whose business is conducted on the territory of one state.
Global Value Chain
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Researchers at Duke University (USA) consider the global CVC as a business activity and its main participants, which are distributed among individual companies and countries. An example of such a value chain is the Starbucks model. Within the framework of this CVC, coffee beans are supplied from various countries, and the finished product is distributed throughout the world.
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Level of detail in value chains
The management of the value chain, taking into account the set objectives, can be visualized with different levels of detail. For example, business analyst Ben Thomson in his article compares the positions of Amazon and Walmart corporations within the framework of the CSC, focused on satisfying consumer demand in retail sales.
Walmart's core business is wholesale purchasing, distribution, and retail stores. The value chain in this case includes:
Purchasing products at wholesale prices from suppliers.
Distribution of goods using specialized centers, logistics infrastructure and processes aimed at maintaining the quality of perishable products, delivery of goods to stores.
Satisfaction of end consumer demand occurs through Walmart retail stores.