Value chain analysis of amul

It is important, along with the mechanics of it all, to keep customers feeling confident and secure enough to remain loyal to the business.

What is a Value Chain Analysis?

Use with other analysis tools[ edit ] This section does not cite any sources. Goals and outcomes Ideally, value chain analysis will help identify areas that can be optimized for maximum efficiency and profitability.

Definition Value chain analysis VCA is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation. The sum total of link-level value-added yields total value.

Cost advantage To gain cost advantage a firm has to go through 5 analysis steps: Its goal is to recognize, which activities are the most valuable i.

Establish the relative importance of each activity in the total cost of the product. By analyzing and evaluating product quality and effectiveness of services, along with cost, a business can find and implement strategies to improve.

Starbucks as an example of the value chain model

For example, a manufacturer might require Value chain analysis of amul parts suppliers to be located nearby its assembly plant to minimize the cost of transportation. Operations is the stage at which the raw materials are turned into the final product. According to Smartsheeta value chain analysis helps you recognize ways you can reduce cost, optimize effort, eliminate waste and increase profitability.

Businesses should then identify links between activities, knowing that if costs are reduced in one area, they can be reduced in another. The company does not outsource its procurementensuring high quality standards right from the point of selection of coffee beans.

Add more product features; Focus on customer service and responsiveness; Increase customization; Offer complementary products. The primary activities are directly related to the creation of a good or service, while the support activities help in enhancing the efficiency and work to obtain a competitive advantage among peers.

The Maintenance Value Chain approach is particularly successful when used as a tool for helping change management as it is seen as more user-friendly than other business process tools. These are transported to the storage sites, after which the beans are roasted and packaged. You can learn more on her blog, insearchofthewritedirection.

September Learn how and when to remove this template message Once value has been analysed and the contributing parts of the organisation have been identified, other models can be used in conjunction with the value chain to assess how these areas can either be improved or capitalised upon.

Get a free 10 week email series that will teach you how to start investing. To enhance efficiency and to optimize profits, multinational enterprises locate "research, development, design, assembly, production of parts, marketing and branding" activities in different countries around the globe.

The total costs of producing a product or service must be broken down and assigned to each activity. For companies that produce goods, the value chain starts with the raw materials used to make their products, and consists of everything added before the product is sold to consumers.

Identify the best sustainable differentiation. Creating and Sustaining Superior Performance in After identifying all value chain activities, managers have to focus on those activities that contribute the most to creating customer value.

The SCOR framework has been adopted by hundreds of companies as well as national entities as a standard for business excellence, and the U. It is based on the notion of value-added at the link read: Using the tool There are two different approaches on how to perform the analysis, which depend on what type of competitive advantage a company wants to create cost or differentiation advantage.

Value Chain Analysis

For related reading, see " Industry Handbook: Marketing and Sales Starbucks invests more in superior quality products and high level of customer service than in aggressive marketing.

Its aim in doing so was to provide a sustainable means of making ethanol that would increase the incomes of the rural poor, without sacrificing food and fodder security, while protecting the environment. Activity based costing is used to calculate costs for each process.

Inbound logistics are the receiving, storing and distributing of raw materials used in the production process. Equally, other models can be used to assess performance, risk, market potential, environmental waste, etc.India Amul/National Dairy Development Board (Amul/NDDB) Total cost: NA Financier Government Year of establishment: Figure 1: Amul value chain and model Impact on the target group.

The intervention has reached a total of 13 million households all over India. Even the smallest producer, producing only 2 litres a day, can benefit from the. A value chain is a series of activities or processes that aims at creating and adding value to an article at every step during the production process.

Starbucks as an example of the value. Value Chain The value chain also chain as value chain analysis is a concept from business management that was first described and populated by Michael Porter in A value chain is a chain of activities for activities for a firm operating in a specific industry.

An overview of Amul Supply Chain Management. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website.

The Commodity Chain Analysis On Amul Marketing Essay.

Value chain

Print Reference this. Published: 23rd March, Disclaimer: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. That's the essence of AMUL. Value for Money: If the customer buys an AMUL product, they get what they.


Value chain analysis of amul
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