Value chain analysis Model for automobile Industry
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Transcript of Value chain analysis Model for automobile Industry
Value Chain AnalysisAUTOMOBILE INDUSTRY
PREPARED BY : KAPIL SHENDGE
Introduction
What is Value Chain
The primary value chain activities are:
Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required.
Operations: the processes of transforming inputs into finished products and services.
Outbound Logistics: the warehousing and distribution of finished goods.
Marketing & Sales: the identification of customer needs and the generation of sales.
Service: the support of customers after the products and services are sold to them.
Continued…
These primary activities are supported by:
Infrastructure: organizational structure, control systems, company culture, etc.
Human resource management: employee recruiting, hiring, training, development, and compensation.
Technology development: technologies to support value-creating activities.
Procurement: purchasing inputs such as materials, supplies, and equipment
Competitive Advantages of Value Chain Analysis
Cost advantage: by better understanding costs and squeezing them out of the value-adding activities.
Differentiation: by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors.
Value Chain for Automobile Industry
Inbound Logistics
Here goods are received from a company's suppliers.
They are stored until they are needed on the production/assembly line.
Goods are moved around the organization.
Purchases their raw material from all around the world, In order to maximize their availability of raw material
Operations
This is where goods are manufactured or assembled.
Individual operations could include organizing the parts to make new cars & the final tune for a new car's engine.
Industries are known for their reliability which comes from efficient operations. For eg. Toyota’s JIT
Outbound Logistics
The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer
Many Manufacturers manage their own Showrooms in different countries
Sometimes even raw parts are supplied to different Manufacturing units
Marketing and Sales
This area focuses strongly upon marketing communications and the promotions mix
Communication channels can be :
1. Newspaper Advertisements
2. TV commercials
3. Social Media Marketing
4. Demo Cars
5. Exclusive Showrooms
Services
Large Network of Workshops available for Services
This includes all areas of service such as ;
1. Final Checking
2. After Sales Services
3. Complaint handling
4. Training
5. On-call Services
Support Activities
Procurement : This function is responsible for all purchasing of goods,
services and materials
Aim is to secure the lowest possible price for purchases of the highest possible quality.
Technology Development : Important source of competitive advantage.
Companies need to innovate to reduce costs and to protect and sustain competitive advantage.
Support Activities
Human Resource Management : Employees are an expensive and vital resource.
It Manages recruitment and selection, training and development, & rewards and remuneration.
For eg. Toyota motors consider their employees as HUMAN CAPITAL.
Infrastructure : This activity includes corporate or strategic planning.
Manufacturing plants, Machineries, etc
Competitive Advantages
Cost Advantage Cheaper Supplier
Efficient Assembly Line
Brand Owned Showroom
Differentiation Use of JIT approach
Efficient Operations Management System
CRM , HRM & MIS
Lean Manufacturing
Innovative Marketing Strategies
Thank You