Apr 25, 20 value chain analysis is a strategy tool used to analyze internal firm activities. Value chain definition, its management and analysis aims lecture duration. Supply chain management adidas free download as powerpoint presentation. Using valuechain analysis to discover customers strategic needs article pdf available in strategy and leadership 364 july 2008 with 7,861 reads how we measure reads. Nikes evolving supply chain clelia peters mba 09 these days, your new sneakers are far more likely to have spent more time traveling than you have. Nike is a celebrity brand of sports shoes, apparel and equipment. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. Pdf using valuechain analysis to discover customers. The value chain from competitive advantage, by michael. Nike has evolved from an organization that manufactures for professional athletes to a company that is manufacturing for all ages, demographics and fashion inclined too through technological innovations. The first step in mapping the market is to delineate the value chain. The value chain was designed by michael porter in 1985 as a systematic way to examine how competitive advantage develops and to identify where value is added in an organisation.
Value added selling price less the cost of purchased raw materials has sometimes been used as the focal point for cost analysis because it was viewed as. The flow of seed to farmers and grain or tubers to the market occurs along chains. End of file 0227a8b1454fe909a4cf14934831f599 open a command window and paste the first command below then hit enter. Value chain analysis of airasia the value chain analysis is used to evaluate the value of each particular functional activity that is added to the organisations products or services as seen in diagram 1 pic a logistics this involves all areas of receiving, storing of inputs when producing outputs. The ultimate goals in performing value chain analysis are to maximize value creation while also monitoring and minimizing costs. Around the world, it can be easily recognized by its swoosh logo. Value chain for nike the decision that would be made for the inbound logistics may include what level of inventory to hold. Doc nike supply chain analysis siddiqa shahnas academia.
A five forces analysis, based on michael porters model, points out that competition, customers and substitutes are the most important external forces in nikes industry environment. An analysis of the value chain rather than value added is the appropriate way to examine competitive advantage. Value chain analysis methodologies in the context of. However nike accomplished it, the company truly epitomizes a digital master and reflects the kind of transformation that is going to drive manufacturing in. Nike value chain analysis by nina jakubowski on prezi. Scribd is the worlds largest social reading and publishing site.
The infographic below shows an overview of those different stages or tiers of our value chain, the main processes within those tiers, and the relative carbon and water impacts of the tiers. Value chain analysis pvc a technique that creates a dynamic view of major sets of activities that represent and deliver the companys core value proposition or those that impede performance. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain workgroup. Ardhi puji hariadi aswin budi pratomo danny dharmawan kosasih erry sunarli gede arya wiguna hari tarigan muhammad ahsin rogayya yuri pramono yudho 2. Nike has a global procurement team to manage the procurement part of its supply chain management.
Porter has dedicated much of his career to studying competitive advantage. Nikes value chain and competitive forces in 1984, nike owned just 16% of the athleticshoe market, and for much of the 1980s it was running neckandneck with reebok wilson 1. Michael porter discussed this in his influential 1985 book competitive advantage, in which he first introduced the concept of the value chain. Some examples of nikes marketing and sales activities are sales force, advertising, promotional activities, pricing, channel selection, quoting. Uber value chain analysis is a strategic analytical tool that helps to identify the sources of value and competitive advantage for the global transportation technology company. Nike inc study of value chain functions and how they contribute to the success of nike.
Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply. As stated in its annual report, nike is primarily a design and marketing company. Apr 06, 2011 these value drivers can be used to estimate a firms future free cash flows ultimately the firms value. Quagrainie3 1department of animal science and production, sokoine university of agriculture, morogoro, tanzania. Agriculture and rural development includes bibliographical references and index. The structure of the present paper is the following. Value chain analysis looks at what benefits value a companys products and services offer. Use of it to improve customer service and experience.
Now, with somewhere between 4347% of that market, nike is the undisputed leader. An overview of nikes supply chain and manufacturing. In the 90s there were serious allegations of unethical practices carried out by nike in terms of their asian suppliers and how services were. Value chain analysis of nike value chain of nike is the best known example of business management concept. This report explores how nikes approach to improving social and environmental conditions in its global supply chain has evolved through integrated management of sustainability and innovation, increased supplier incentives, and systems innovations intended to prevent problems before they arise. Guidelines for value chain analysis jon hellin and madelon meijer 4 2. Doc global supply chain management case study nike. Edraw can also convert all these templates into powerpoint, pdf or word templates.
Value chain analysis of farmed nile tilapia oreochromis. Understanding how your company creates value, and looking for ways to add more value, are critical elements in developing a competitive strategy. Or nestle company can buy the coffee beans directly from the suppliers which is the firm value chain. The value chain the term value chain was used by michael porter in his book competitive adva n tage. Edraw is used as a value chain software coming with readymade value chain templates that make it easy for anyone to create beautiful value chain. You should be familiar with the original model see figure 1 and the activities described within it. Apart from these things, the brand is globally popular for its quality of products. Value chain for nestle free essay example studymoose. In other words, by looking into internal activities, the. Nikes strategy to improve conditions in its global supply. Norcio 2192007 when bill bowerman, a former trackandfield coach at university of oregon and cofounder of nike inc, once said if you have a body, you are an athlete, his words marked the foundation for a future business venture.
Focusing an organization on its pvc helps realign management to key priorities, breaks down functional silos, and prioritizes. One of his bestknown concepts is the value chain, which is used to deliver a product or service to the market and has three key objectives. Handle, 2009 criticises porters value chain analysis framework for difficulties associated with the identification of building blocks. Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply chain management practices. This is a relatively new approach, relying on classical transfer pricing skills to develop key insights into the value chain using objective third party evidence. Value chain analysis free download as powerpoint presentation. Its goal is to recognize, which activities are the most valuable i. The value chain from competitive advantage, by michael porter.
Mar 27, 2018 uber value chain analysis is a strategic analytical tool that helps to identify the sources of value and competitive advantage for the global transportation technology company. The importance of innovative supply chain management has been highlighted by scholars and researchers for successful management of businesses in the 21 st century. Influential work by michael porter suggested that the activities of a business could be grouped under two headings. Subsector analysis value chain analysis subsector and value chain analysis action for enterprise. See how easy it is to create a value chain analysis chart in just a few simple steps. Value chain analysis of nike value chain of nike is the best known example of. Value chain analysis is a useful tool for working out how you can create the greatest possible value for your customers.
Another important decision may be transportation planning. Figure below illustrates the essence of uber value chain analysis. Strengths firstly, nike inc was leader of sports equipment industry, which also top suppliers of sports equipment around the world. The value chain templates are easy to use and free.
Value chain analysis key points the value chain helps an organization identify how it creates value for customers and locate where its sources of competitive advantage lie. Feb, 2018 value chain analysis is the process of looking at the activities that go into changing the inputs for a product or service into an output that is valued by the customer. Nike s value chain and competitive forces in 1984, nike owned just 16% of the athleticshoe market, and for much of the 1980s it was running neckandneck with reebok wilson 1. Moreover, authors such as basu and wright 2012 brand the model as outdated and argue that modern businesses have to reinvent the value in order to stay competitive rather than merely adding value. Then you analyze how to use this value to reduce costs. Nike manufacturing and supply chain strategies market realist. Introduction value chain analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business.
Integration, incentives and innovation nikes strategy to improve social and environmental conditions in its global supply chain angharad porteous and sonali rammohan 19th november 20 nikes approach to managing supplier responsibility has greatly evolved since the 1990s, when the. Nike inc study of value chain functions and how they. And if our assumptions are right, the transformative process required nike to develop some of its own technologysoftware to power the value chain from ecommerce store to product design. The reasons for nikes success is not because of following one best strategy rateher a combination of supply chain strategies that the company implemented. T he value chain analysis describes the activ ities the organ ization performs and links them to the organizations competitive pos ition. An overview of nikes supply chain and manufacturing strategies. However, with new competitive entrants with better service and lead time, and even fashion brands moving into their market space, supply chain excellence has been elevated in the past few years, and is viewed as a competitive weapon. Sep 16, 2015 and if our assumptions are right, the transformative process required nike to develop some of its own technologysoftware to power the value chain from ecommerce store to product design. Cold chain market for food industry will see strong expansion through 2023. Nike enjoys a strong brand, wellmanaged distribution processes and a compelling product offering. Value chain analysis is the process of looking at the activities that go into changing the inputs for a product or service into an output that is valued by the customer. Value chain models can be created in both qualitative and quantitative forms. We said that based on our footprint across our entire supply chain we saw a number of key focus areas for nike.
Many organizations do not consciously make decisions to optimize the sources of. Then, a number of chapters follow outlining different analytical approaches. Markets, supermarkets, traders, coffee shops and retailers are the channel value chain and finally the product will be delivered to the customers and consumers the buyer value chain. Nike value chain analysis student s name what is value. Or leverage the value to stand out from their competition. Integration, incentives and innovation nikes strategy to. In the second chapter, a short introduction into history and concepts of value chain analysis is given. It system across supply chain, strong financial position and crs, empowerment of top management, great financial discipline with low debt, strong brand product market place solution delivery and support, effective compliance process through strategic knowledge and.
Based on your analysis above q1q11 propose a strategic plan that can improve the firms future free cash flows i. Dec 07, 2016 value chain analysis looks at what benefits value a companys products and services offer. Value chain management involves the collaborative allocation of resources within and between the respective. Under swot analysis categories into four part that are strengths, weaknesses, opportunities, and threats. Products move from several distribution centers across a network of thousands of retail. These value drivers can be used to estimate a firms future free cash flows ultimately the firms value. These activities are technology development, product design, component manufacturing, assembly, marketing, distribution and retail sales. To help visualize this part of the process, we must understand that the supplier has its own supply chain and it ends with exporting the products to nike, which is where nikes supply chain begins. Focusing an organization on its pvc helps realign management.
Generally, inbound logistics involves receiving and storing raw materials. An organization must provide value in order to attract and reta in its customers. Primary value chain activities inbound activities the inbound logistics aims of nike inc. The strategic analysis that i choose for nike inc which are swot analysis and value chain. Value chain analysis is defined as the multidimensional assessment of the performance of value chains including the analysis of material flow, information flow, management and control of the value chain taylor, 2005. Value added selling price less the cost of purchased raw materials has sometimes been used as the focal point for cost analysis because it was viewed as the area in which a firm can control costs. Pdf using valuechain analysis to discover customers strategic. Free value chain templates for word, powerpoint, pdf.
Norcio 2192007 when bill bowerman, a former trackandfield coach at university of oregon and cofounder of nike inc, once said if you have a body, you are an athlete, his words marked the foundation for a. Nikes manufacturing network has over 525 factories. Value chain analysis example using primary activities. Its headquarter is located in washington country oregon united states.