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Essay / Research Paper Abstract
A 7 page paper discussing retailing in terms of the value chain and Porter's Five Forces analysis, relating the value of IT activities to each point. Examples are Wal-Mart and Amazon.com. Bibliography lists 11 sources.
Page Count:
7 pages (~225 words per page)
File: CC6_KSitValChnRet.rtf
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Unformatted sample text from the term paper:
technology (IT) has become the backbone of operation of many types of businesses. Evolving from an costly approach to record-keeping, IT now enables business decisions and consistently increasing worker
productivity. Michael Porter devised his value chain and five forces industry analysis methods well before IT was available to all retailers of all sizes, but IT fits well in
both analysis perspectives. The Value Chain NetMBA (n.d.) explains that it was in his 1985 book Competitive Advantage that Michael Porter presented and
explained the concept of the value chain. It is a sequence of activities common to a wide range of organizations and types of organizations, and includes both primary and
support activities. Primary activities are grouped into five divisions: inbound logistics; operations; outbound logistics; marketing and sales; and service (The Value Chain,
n.d.). These primary activities are supported by the infrastructure of the firm; human resource management; technology development; and procurement. "The firms margin or profit then depends on its
effectiveness in performing these activities efficiently" (The Value Chain, n.d.), with the goal that the prices customers are willing to pay for the organizations goods and services exceed the costs
of operation of the organization. Thus it "is in these activities that a firm has the opportunity to generate superior value" (The Value
Chain, n.d.), and it is within these areas - whether primary or secondary - that the organization can build and maintain competitive advantage through "reconfiguring the value chain to provide
lower cost or better differentiation" (The Value Chain, n.d.). Technologys Effect Technologys effect on the value chain is notable in that to some
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