Your Present Organization: Starbuck's Value Chain Analysis

Starbuck’s Value Chain Analysis
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Starbuck’s Value Chain Analysis
The concept of value chain was first introduced by Michael Porter in his book "Competitive Advantage: Creating a Sustaining Superior Performance" that he wrote in 1985. The value chain is all the activities involved in a production process. The objective of businesses is to utilize the available resources in changing their inputs into outputs that are of greater value than the previous ones. This is based on the theory that the greater the value a firm creates, the more profits it gets. The greater value created is then transferred to customers creating a competitive advantage. The production process is divided into primary and secondary activities. Those activities that are directly involved in creating a product or services are categorized under primary activities while the supporting activities under secondary. Therefore, value chain analysis is the process of identifying the primary and secondary activities of a company that adds value to its final products and services to determine how they reduce the overall costs of the firm.
In this analysis, I choose Emirates to help in explaining this concept of value chain analysis. The story of Emirates began in 1985 when it launched its operations with two aircrafts. Currently, it flies the world’s largest fleets of Boeing 777 and Airbus A380s offering the customers the latest comfortable and most efficient aircraft. Its mission according to its website is "We exists to deliver the world’s best in-flight experience."
Emirates Primary Activities
* Inbound Logistics
Emirates inbound logistics is the manner in which it controls its internal activities as well relationship with suppliers. The company has few to no suppliers meaning it outsources resources by itself. It also adjusts the prices of its products and services depending on the demand.
* Operations
Emirates ha self-operation on a wide range of services such as airport pushback, check-ins, Boarding and Lounge services, service desk as well as baggage handling.
* Outbound Logistics
The company has a partnership with the Emirates Sky Cargo which acts as its intermediaries. It has set out the standards that have to be observed to improve the value of the company.
* Marketing and Sa...