Pizza hut porters value chain model

If your goal is to differentiate, then your overall value goal is to perform all of your activities better than your competition.

It also explains that if value is added during each step, the overall value of the product gets enhanced thus helping in achieving greater profit margins. There is a large investment in marketing to drive additional sales, and compete with the other fast food chains. Doing a value chain analysis is a fantastic way of following a process to review all of the ways you can generate value for your customers.

Identify the value creating activities for the customer, and focus on the specific actions that create the most customer value. Primary activities Inbound logistics: Understanding how your company creates value, and looking for ways to add more value, are critical elements in developing a competitive strategy.

Are you competing on a cost basis, or are you targeting a differentiation strategy? If you exceed the value that all of your competition provides, your clients will continue buying from you. Many customers use Starbucks stores as makeshift office or meeting place because of the free and unlimited WiFi.

Evaluate the differentiation strategies to improve value to the customer, such as adding more product features, putting an emphasis on customer service responsiveness, increase the ability to customize and tailor the products, and offer a range of complementary products that enhance your overall product mix Identify the best differentiation method that is sustainable long term, which is often a mix of many different activities to promote delivering a higher customer value.

Operations Starbucks operates in 65 countries, either in the form of direct company-owned stores or licensees. One of their main objectives is to provide superior levels of customer service. There are three different types of subactivities: A value chain is a set of activities that an organization carries out to create value for its customers.

If your business is in the tech industry, or primarily online, you can still create value for customers, this course offers a great insight in how to identify your internet value chain. The majority of the products are sold in their own or in licensed stores only.

The logic behind it is simple: Support Activities These activities support the primary functions above. Within an organization the value chain is simply all the activities which are performed internally as they transforming raw inputs into finished products.

Delivered twice a week, straight to your inbox. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities. Very soon you be excelling in all the things that really matter to your customers.

There are a wide range of training programs available for staff, who are considered to be one of Starbucks most important resources. Building on this, all you really need to do is take action and make a plan on the changes that are needed within your production process.

Starbucks as an example of the value chain model

Quality assurance activities ensure that direct and indirect activities meet the necessary standards. Which activities are adding value to your organization, and how? Take the steps outlined above and apply the same methodology to your company. Outbound Logistics There is very little or no presence of intermediaries in product selling.

They capitalize on economies of scale, and use massive global purchase orders to source the best prices on raw products for their restaurants. Michael Porter first introduced the concept of the value chain inand your goal while you are analyzing it is to identify where you can improve and grow your competitive advantage.

People are a significant source of value, so businesses can create a clear advantage with good HR practices. The way in which value chain activities are performed determines costs and affects profits, so this tool can help you understand the sources of value for your organization. These will generally be cross-functional in nature, rather than specific to each primary activity.

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.

Primary Activities Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. Indirect activities allow direct activities to run smoothly. Inbound logistics — These are all the processes related to receiving, storing, and distributing inputs internally.

Companies use these primary and support activities as "building blocks" to create a valuable product or service. Value-chain business activities are divided into primary activities and secondary activities.About is a collaborative research and analysis website that combines the sum of the world's knowledge to produce the highest quality research reports for over 6, stocks, ETFs, mutual funds, currencies, and commodities.

Pizza hut Porter's Case study Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to. UCVC Assignment Value Chain of Pizza Hut Submitted by: Shubham Singhal Shubham Singhal Pizza Hut Pizza Hut is one of the best wide spread international fast food joint.

Pizza Hut was the first restaurant to launch the service delivery to consumers.

Porter's Value Chain

in the case of Pizza the human resources of Pizza Hut changes occurred alongside the utilisation of new strategies in business such as new products and locations. and radio. every time a branch or franchise is opened in various locations in the world.

Value Chain Analysis: Example Case Studies to Get You Started

The Pizza Hut restaurant chain specializes in the sale of ready-to-eat pizza products. The chain sells a variety of pizzas with a variety of toppings.

In some restaurants, Pizza Hut also offers breadsticks, pasta, salads and sandwiches ( May 26,  · As another example, let’s look at the value chain of Pizza Hut: Primary activities Inbound logistics: This includes all of the sourcing activities to procure and standardize all of the produce, ingredients and materials to bake pizza’s fast, consistently, and delicious – in Travis Bennett.

Pizza hut porters value chain model
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