Value Chain Analysis EXPLAINED | B2U | Business To You

Summary

This video script delves into the concept of the value chain analysis, a systematic approach to understanding a company's competitive advantage. It outlines the primary and support activities that create value, using Besseling Technologies as a case study for their innovative cleaning robots. The script discusses the importance of optimizing and coordinating these activities for efficiency and higher profit margins, ultimately suggesting that a strong internal linkage leads to a more competitive business.

Takeaways

• 📚 The script discusses the concept of 'Value Chain Analysis', a systematic approach to understanding a company's activities and resources that contribute to its competitive advantage.
• 🔍 It emphasizes the importance of mapping a company's value chain to assess where value is created and how to improve it, focusing on both cost efficiency and product differentiation.
• 🛠️ The script outlines the primary activities within the value chain, including inbound logistics, operations, outbound logistics, marketing and sales, and service.
• 🔄 Support activities are also highlighted, such as procurement, technology development, human resource management, and infrastructure, which indirectly support the primary activities.
• 🌐 The video script uses Besseling Technologies as a case study to illustrate how a company's value chain operates in real life, specifically in the production of cleaning robots for greenhouse rooftops.
• 🛒 Inbound logistics is described as the process of receiving, storing, and disseminating inputs to the products, which is crucial for ensuring the availability of materials for production.
• 🚀 Operations are detailed as the transformation of inputs into the final product, with a focus on efficiency, quality control, and the use of technology to enhance the production process.
• 📦 Outbound logistics involve the distribution of the finished product to customers, which includes activities like warehousing, material handling, scheduling, and transportation.
• 📢 Marketing and sales are vital for creating awareness and demand for the product, with strategies such as advertising, promotion, salesforce management, and pricing.
• 🔧 After-sales service is identified as an extension of the product itself, essential for maintaining customer satisfaction and loyalty, which can affect a company's reputation and future sales.
• 🛠️ Procurement is highlighted as the starting point of the value chain, responsible for acquiring the necessary materials and resources at the best possible cost.
• 💡 Technology development is portrayed as a key driver of competition, with the need for companies to stay abreast of technological trends to improve their products and production processes.
• 👥 Human resource management is essential for ensuring that the right skills are available at the right time for various value chain activities, affecting the overall performance of the company.
• 🏢 Infrastructure supports the entire value chain and includes activities like general management, planning, finance, accounting, legal affairs, and quality management.
• 🔗 The script concludes with the importance of optimizing and coordinating all activities within the value chain to ensure a smooth process flow and maintain a competitive edge.

Q & A

What is the main focus of the video?

The main focus of the video is to explain the concept of the value chain analysis, which is a systematic approach to understanding a company's internal organization and activities to gain a competitive advantage.

Who is the speaker in the video?

The speaker in the video is Lars, who introduces himself as part of the Business Trio.

What is the value chain analysis?

The value chain analysis is a framework developed by Michael Porter that helps in understanding the activities of a company that contribute to its competitive advantage. It involves mapping the company's value chain to assess what value is created and where profits are made.

What are the primary activities in the value chain?

Primary activities in the value chain are directly involved in the physical creation and selling of the product or service. They include inbound logistics, operations, outbound logistics, marketing and sales, and service.

What are the support activities in the value chain?

Support activities in the value chain are those that support the primary activities. They include procurement, technology development, human resource management, and firm infrastructure.

How does inbound logistics relate to a company's value chain?

Inbound logistics in the value chain refers to the activities associated with receiving, storing, and disseminating inputs to the product. It involves material handling, inspections, warehousing, inventory control, and returns to suppliers.

What is the role of operations in the value chain?

Operations in the value chain involve the transformation of inputs into the final product. This includes machining, production, assembly, packaging, equipment maintenance, testing, and quality control.

How does outbound logistics contribute to a company's value chain?

Outbound logistics in the value chain involves the activities associated with collecting, storing, and forwarding the finished product to buyers. It includes finished goods warehousing, material handling, order processing, scheduling, and transportation.

What is the significance of marketing and sales in the value chain?

Marketing and sales in the value chain are crucial for making potential customers aware of the product and persuading them to buy it. It includes advertising, promotion, sales force management, channel selection, and pricing.

How does after-sales service fit into the value chain?

After-sales service is an important part of the value chain as it enhances the value of the product by providing support to customers after the purchase. It includes activities like installation, repair, customer training, ongoing maintenance, spare parts supply, and product adjustments.

What is the importance of procurement in the value chain?

Procurement is the activity of purchasing and managing the supply of goods and services needed for the company's operations. It is crucial in the value chain as it determines the quality and cost of inputs that go into the final product.

How does technology development impact the value chain?

Technology development is a support activity in the value chain that can significantly improve the product and production process. It can involve telecommunications, accounting software, product design, marketing research, and process automation.

What is the role of human resource management in the value chain?

Human resource management in the value chain involves recruiting, hiring, training, developing, compensating, motivating, and retaining employees. It is essential for ensuring that the right skills are available at the right time for various value chain activities.

What are the infrastructural activities in the value chain?

Infrastructural activities in the value chain include general management, planning, finance, accounting, legal, government affairs, and quality management. These activities typically support the entire value chain.

How can a company optimize its value chain?

A company can optimize its value chain by improving the efficiency and coordination of its activities. This can involve better communication between departments, reducing duplication of work, and ensuring that decisions in one activity positively affect others.

Outlines

00:00

📈 Introduction to Value Chain Analysis

The video script introduces the concept of value chain analysis, a systematic approach to understanding an organization's internal activities and their competitive advantage. It explains how a company transforms inputs into outputs, creating added value for customers. The script mentions Michael Porter's work on value chain analysis, which helps organizations identify their strategic layers and perform activities more efficiently than competitors. The script also outlines the primary and support activities within a value chain, using Besseling Technologies as a real-life example of a company that produces cleaning robots for greenhouse rooftops.

05:00

🔧 In-Depth Look at Primary Activities and Operations

This paragraph delves into the primary activities of a value chain, focusing on operations such as production, assembly, packaging, and quality control. It uses Besseling Technologies as an example, illustrating how the company's team of technicians creates state-of-the-art cleaning robots. The paragraph also covers outbound logistics, which involves storing and distributing the finished products to customers worldwide. Marketing and sales are highlighted as crucial for making potential customers aware of the product, with various strategies such as advertising, promotion, and salesforce management discussed.

10:02

🛠️ Support Activities and Their Impact on Value Chain

Support activities are the backbone of the value chain, ensuring the smooth operation of primary activities. The paragraph discusses procurement, technology development, human resource management, and infrastructure as essential support activities. It emphasizes the role of technology in driving competition and the importance of human resource management in maintaining a skilled workforce. Infrastructure is presented as a critical component that supports the entire value chain, with examples of how Besseling Technologies leverages software and hardware to improve its products and production processes.

15:03

🔄 Optimization and Coordination for Enhanced Value Chain

The final paragraph emphasizes the importance of optimization and coordination within the value chain to maintain a competitive edge. It discusses how improvements in one activity can impact others, leading to cost savings and quality enhancements. The paragraph also stresses the need for effective communication and alignment to avoid inefficiencies such as missed communications, misalignments, and duplicated work. The script concludes by suggesting that combining value chain analysis with other frameworks like PESTEL and Porter's Five Forces can provide a comprehensive understanding of both internal and external business environments.

Keywords

💡Value Chain Analysis

Value Chain Analysis is a business strategy framework developed by Michael Porter to identify and leverage the competitive advantage of an organization. It breaks down a company's activities into two main categories: primary activities, which are directly involved in the production and sale of the product, and support activities, which indirectly support the primary activities. In the video, Value Chain Analysis is used to understand how a company can create value and maintain a competitive edge by performing activities more efficiently or effectively than its competitors.

💡Competitive Advantage

Competitive Advantage refers to the attributes that enable a company to outperform its competitors in the market. It can be achieved by offering lower prices, superior quality, better service, or other factors that customers value. The video discusses how Value Chain Analysis helps companies identify the sources of their competitive advantage, such as performing activities more cheaply or better than competitors.

💡Primary Activities

Primary Activities are the core operations of a business that directly contribute to the creation and sale of its products or services. In the context of the video, primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The script mentions Besseling Technologies, a company that produces cleaning robots, as an example where primary activities are crucial for the development and distribution of their innovative products.

💡Support Activities

Support Activities are those that indirectly support the primary activities by providing necessary resources and services. They include procurement, technology development, human resource management, and infrastructure. The video script highlights the importance of these activities in the overall value creation process, such as how technology development can drive a competitive advantage through innovation.

💡Inbound Logistics

Inbound Logistics is the process of receiving, storing, and disseminating inputs to the product. It involves material handling, inspections, warehousing, inventory control, and returns to suppliers. In the video, Besseling Technologies' inbound logistics are exemplified by the procurement of necessary materials like electronics and cables for the production of their cleaning robots.

💡Outbound Logistics

Outbound Logistics involves the activities associated with collecting, storing, and forwarding the finished product to buyers. It includes warehousing, material handling, order processing, scheduling, and transportation. The script describes how Besseling Technologies manages the distribution of their cleaning robots to customers scattered all over the world.

💡Marketing and Sales

Marketing and Sales are activities aimed at promoting the product and facilitating its purchase by customers. This includes advertising, promotion, salesforce management, channel selection, and pricing. The video script discusses the role of marketing and sales in making potential customers aware of the product and encouraging them to make a purchase, using Besseling Technologies' marketing strategies as an example.

💡Service

Service refers to the activities that enhance the value of the product by providing after-sales support to customers. This can include installation, repair, customer training, ongoing maintenance, and product adjustments. In the video, service is emphasized as an extension of the product itself, which is essential for maintaining customer satisfaction and loyalty.

💡Procurement

Procurement is the process of purchasing raw materials, components, machinery, equipment, and other supplies needed for the production process. It is a critical support activity that ensures the availability of necessary inputs for the company's value chain. The script mentions procurement in the context of Besseling Technologies sourcing electronic components and other materials for their cleaning robots.

💡Technology Development

Technology Development is a support activity that focuses on improving the product and the production process through technological advancements. It can include the use of software, hardware, and other technological solutions to enhance efficiency and effectiveness. The video script highlights the importance of technology development in Besseling Technologies' ability to innovate and create state-of-the-art cleaning robots.

💡Human Resource Management

Human Resource Management involves all activities related to the recruitment, hiring, training, developing, compensating, motivating, and retaining of employees. It is a support activity that ensures the company has the right skills available at the right time for various value chain activities. The script does not provide specific examples of human resource management but implies its importance in the overall value creation process.

💡Infrastructure

Infrastructure consists of a number of activities including general management, planning, finance, accounting, legal, government affairs, and quality management. These activities support the entire value chain and are sometimes viewed as a powerful source of comparative advantage. The script suggests that effective communication and innovation within infrastructure can contribute to a company's competitive advantage.

Highlights

Introduction to the value chain analysis, emphasizing the importance of internal organization and activities for competitive advantage.

Explanation of how a company's value chain transforms inputs into valuable products or services.

Discussion of Michael Porter's development of the value chain concept in his book 'Competitive Advantage: Creating and Sustaining Superior Performance'.

Detailed breakdown of primary activities in the value chain: inbound logistics, operations, outbound logistics, marketing and sales, and service.

Explanation of support activities in the value chain: procurement, technology development, human resource management, and firm infrastructure.

Real-life example of Besseling Technologies and their value chain in producing cleaning robots for greenhouse rooftops.

Insight into Besseling's inbound logistics, including purchasing and handling of raw materials and inputs.

Overview of Besseling's operations, including machining, production, assembly, and quality control.

Description of Besseling's outbound logistics, focusing on the distribution and storage of finished products.

Marketing and sales strategies of Besseling, highlighting their methods for reaching and engaging potential customers.

Importance of after-sales service in maintaining customer satisfaction and company reputation.

Role of procurement in managing costs and purchasing items necessary for the value chain.

Significance of technology development in enhancing both product and production processes, with examples of contemporary technological trends.

Human resource management's role in recruiting, training, and retaining personnel crucial for value chain activities.

Explanation of firm infrastructure, including general management, finance, and quality management, and its support for the entire value chain.

Discussion on the importance of optimization and coordination within the value chain to improve efficiency and competitive advantage.

Final thoughts on combining value chain analysis with other frameworks like PESTEL analysis and Porter's Five Forces for comprehensive business assessment.

Transcripts

in de precious video en de video

framework wow tic tac te bout houdt in

journal resources and capabilities can

lead to is er steeds competitive

advantage

in deze video wil ik spoor die interne

organization and its activities even

more to a systematic approach a better

known as de value chain analysis

die kost bij mapping houdt en company's

value chain

you will be better able to assess woord

true' value with creëert en waarin proef

mens shoeby met mijn naam is lars en

welkom to een nieuw episodes business

trio

ik comp'ny is in snc collectioneur

stream of activity stappen vormt to

design goed nieuws market deliver and

support its product of service

je goed als een cd company's transforms

churn inputs in the way final product

die output is goal is to use the product

in such a way that i have great value to

customers than the original cast of

creating this product

the added value can be considered the

prophets and is of zijn in de keten tess

margin

michael porter finger dit was in born to

come up with a systematic way of eczeem

en in all of this in turn activities and

how they interact in order to better

analyze de sources of competitive

advantage

the devil created to value chain

analysis and publiceren side is in de

boek competitive advantage creating and

sustaining superior performance in 19e

die vijf

porters value chain helps disco kleding

en company into its strategic layer

effectieve this there by creating and

clear overview of the organization

ekompany games competitive advantage by

performing the sport easyclear 11 en

activities more cheaply or better than

its competitors

determine film change nob'dy kon views

hoe de churn supply chain one company's

value chain is embedded in a larger

stream of supply chain activities that

were to the vines en de value system

net als er in close suppliers and buyers

deze video de mond go into the entire

supply chain vorm supplier saldo way to

the and consumer redder focussen

om een one organizations value chain

porter the wider than organizations

value chain activities in primary

activities which are directly in volgt

in de physical creation and selling of

the actual product kon gisting of in

bang logistics operations

outbound logistics

marketing en sales and service en

support activities which surprisingly

support all time on the activities and

each other consisting of procurement

technology development

human resource management and firm

infrastructuur

nou we could explain all of these nine

generic categories of activities the

traditional way

showing beautiful animations

within this case it is perhaps i hear

and more in formules doen vissen te

natural company and showed a value chain

in reallife

leon moet ik drink koedoes om de glider

[Muziek]

dank je

zo weer currently in heerhugowaard een

city nog van mc arnhem in de rhenen

netherlands and were standing in front

of besseling technologies this company

has been producing steeds of the art

cleaning robots voor greenhouse rooftops

voor over deur die juffrouw is product

de room esther esmee helping growers van

all over the world washing greenhouse

rooftops more efficiently and more

sustainable goals in morse light to

enter the greenhouse en die vent chili

en lang groups to grow faster en wie

iphone insight to heavy closer look het

beste links value chain hoe starten

value chain moed en lef en of de primary

activities the inbound logistics

this is where perch geest inputs such as

roma terios ar taking care of the coast

of disfunctioneel is al zo in contact

met externe company's succes suppliers

the activities associated wordt inbouw

logistics of receiving storing en

disseminating inputs toe de products'

en samples invloed

inbouwt material handling inspections

warehousing inventory control and

returns to suppliers wright nou weer een

besseling stokrom voor besseling de

purchase inputs mediq ons eens op met op

pièces

elektriek wires and cables brusjes het

sectoraal

dat we live en chewie en dat somber in

de roofless er was een required

materials heffing collecte intern olie

oppression scant kon shirt de inputs

into the designer product die ik tip het

is een sociaal er wordt op rations ar

machining productie en assembly

packaging equipment maintenance testing

and quality control and scan me zien wie

highly besseling hij zijn derde keer de

team of technicians hoe graf de roef

masser largely bij hen

en de reasult is dit een meezing piece

of technologie

en den brink system outbound logistics

after final product is finished it still

needs to finance waar u de customer die

penning onthouden lienden company is de

product en die chips ride away or has to

be stored for a while the activities

associëren met outbound logistics arm

collecting storing en vissen klinisch

verbloeding de finish product de buyers

and examples include

finn is bush warehousing

houtbouw material handling vorming over

processing scheduling and transportation

and besseling customer's al scattered

all over de wereld en parfum is home

market in the netherlands' de company's

customers for simple china' resume list

australia

en nu nog steeds

de trespa feestje op de roef master to

these different parts of the world rose

leslie bij lent en zien

marketing en sales

defect het product sharp video's dat is

een oude met gimme that are people

willing to purchase them

dit is voor marketing en sales come into

place

dit is de job of marketeers en sales

agents to make sure the potential

customers hardware of the product and

angelique considering by m

de marketing en sales activities ar der

voor derek de provider means by which

players can purchase the product and

encourage them to actually does oh ik

samples include advertising promotion

salesforce management the solution

channel selection and pricing great

tools to structure the entire marketing

en sales process oude marketing fennel

of ayda middel en omstelling hier niks

theorie moest beste links commercial

director

juri i could i tele zullen bouwen wat

besselink marketing en selectief reese

mainly in ply

denk je yes i'm

en het besteling hoe je enorme liever

reactief aan twee chose dan wie twee een

aantal niet toe visser a custom uit 100

reed sobere sophie cycli en dan later is

in dutch zo aller de green ice builder

is al base in hal en de russell romuald

zoiets travel by de bid voor jullie

appje van social media zoals linkedin en

dat soort dingen en wat ik kwijt

specifiek uit denken bij de wortel

market in holland wordt het liefst een

vrouw die zei hoe je hebben dedicated'

newsletter

dat is wings zijn daartoe alle de

interesseert growers voor

distributeurs en wie wie dubai dollar of

articles wie u duurzaam

advertising howie get all other market

information and specially about de nieuw

traint en de nieuwe arcam in markets

we zullen heel veel voor jong message de

juiste geest is freddy word en 220 euro

business is ja wat denk je were much

into deze economie after sales service

is perhaps i is more important and

promotional activities compleet van een

satisfied customers ariely spreadshirt

en een negatieve consequenties voor your

company's reputation might be fast

moreau versions customers how they go

moar die mening en wanneer compleet

solution rather than just the product

service is of te zien is een extension

of the product itself en de private

customers a willing to pay it is

therefore important to header right

customer service practices in place the

activities associated with partner de

value chain on providing service to

enhance om maintain de valley of the

product

absurdisme salt and delivered examples

include adwise installation repair

custumer training om going maintenance

bar supply and product adjustments hier

en besseling die reserverol service and

maintenance mechanics hoe vis het kust

nummers ons site in case of de niet voor

installation and repair mijn and of

course customers can always reach and

please write hier my phone and email for

answers to all clients of burning

questions and that brings to the support

activities starting the lower

procurement this activity with first u

de functie of purchasing and puts you in

the entire companies value chain and is

responsible for the glow sharing prizes

and purchasing item succes raw materials

consument als machinery equipment

office supplies and brings de er niet

het vooral activities within the valley

chain procurement should therefore lobby

kon views wit inbouw logistics waarom

materials ar vissen klieft en stort

het besseling dirar purchaser fetcheth

martijn en niels warnke ontdekt wit al

kans op suppliers of nee daily base is

to purchase items theorie kwesties maar

people van other departments and agree

honden prices that besseling is willing

to pay voornemen

technology development

remember that michael porter rood is

boek in nineteen een i5

now the gates leder technology is prima

chains everthing van bloed en de

technology development activities hij

vergeet in een torens for ever i compani

out there it has become one of the

principal drivers of competition

technologie is en bordin ever value

chain activity book primary and support

actiever is en is needed to improve

boven de product itself en het

productieproces in take that many forms

succes telecommunications

accounting software die er pi sisters

product army

marketing research and process

automation technology and should also

take into account more contemporary

technological trend search artificial

intelligence

3d printing oud moment het en virtual

reality robotic process automation

quantum computing blockchain een cyber

security deden science and cloud just

toenemen view week onze de power

technological change to influence

competitive advantage and even industrie

structuur

ik company's technologisch reggy he

speak om een essentieel ingrediënt in

its overal komt bij de de verschuilen

gee besseling heeft me in ov dingen lot

in software park van op de marshallhulp

master's hardware

nou we deze customers can easily

controller hoek massers groen app or

nette broek meester op er eet voel je

oude medically bij simply connecting de

robot to the greenhouse in journal

climate system

zo weer curly onder of of besselink

productie facility weer een sample of

een greenhouse hoeft ophef in beeld

every time the engineers of besseling

heeft nu technological ideal for de

roofless er they can test de

modifications right hier wie voor extra

implementing het in de product

human resource management of aids arnhem

consyst of all the activities in volt in

de recruiting hiring training developing

compensating motivating and retaining of

all times of personeel dit is een sars

responsability dat er rites skill sar

available het right time voor de various

value chain activities and finally vorm

infrastructuur consyst of een nummer of

activities including general management

planning finance accounting

legal government affairs and quality

management for infrastructure and like

other subjectieve this usually support

the entire valley jane en nootjes in de

video activities for infrastructuur some

times viewed

oh neeee s over het punt camping

powerful source of comparative advantage

as well if you to all of the

aforementioned activities to better

succes verliet zo effectief communicatie

you can of innovation waar ik complex

met in of het advies of technology like

the room esther can be manufactured and

work through value with creator van

customers suppliers and police and

shareholders

let's get back to de studio voor de

final sexy nog de video

en word beck in de studio

identifying the generic value chain ik

timmer this is the first step in die

kneuzingen company's source en of

competitive advantage

it might however be necessary and design

lol doe design activities even more into

this creature activities for example

marketing en sales might be too far

reaching for specifiek company and

should ideally be divided in two

seperate traditional marketing

department's het deze zolang het

promotional the parliament and en

salesforce department's

labels can be chosen freelee the

planning of at greif komt new york

dealing with we dit is advisable to

broccoli follow the actual procesflow of

a company one or in the activities in

twee value chain

indians everthing dat de conclusie dat

should be captured and say primary of

support activities the next step is to

evaluate how all of these activities

communicate to gather and indirect voor

each other work as these relationships

in journal linker dus

klinkertjes kennen lieten week om padded

in vantage in toe wees

optimization and coordination

optimization of us for example when you

improve the inspection of purchase the

materials in inbound logistics

by doing soju reviews de niet voor

controle efforts in op rations

thereby

loring de quality controle kost weed in

het veld each and activity

another example of optimization is een

impuls munt in in ovation capabilities

frome de people begin-tag nonnetje

developments je met je net die are able

to accommodate technology that oude

managing the texts defects in productie

more quickly it would potentially lower

de niet voor service mechanics vanaf uw

sales service

decision made in one activity ervoor

directly effects een ander value chain

ik dvd-writer positively

or negatieveling

that brings to coördination which is

also essentieel ben in proofing de value

chain team edge een uur op de mast hmm

by harding en experience recruiter which

in turn les led to gather fulfilment of

een long outstanding en tekent marketing

position

voor marketing en sales de nieuwe

marketing manager langs een succesvol

marketing campaign that ass eventure

given up sales massively

en switchen case it is also important

that productie en is able to scale up

quickly enough to cope with the increase

the mens

that might mean that nieuwe

productiemachines after the ballet

procurement and more skilled workers

heeft een buick product and hired by

nature am i can

you will in een stem dead fish een score

national mall all of these activities is

also a crucial hier in addition to

optimization to keep the process flow

smooth and competitive even diens

optimization and correlation adwords

publiek of inefficient dit mainly to

miss communications miss alignments

dubbel work and increase kost u zult in

lower margins in general you goed steeds

dat de stronger de interne linker charm

de more competitive you will be kon en

de higher margins will turn out

if you combine de value chain analysis

witte rio framework we talked about

giving you have a good starting point

for en in terminal en alice

compliment is wat boos' pestel analysis

and borders 5 forces for the external en

warm en en you have even more compleet

in de stemming of een shirt en business

and so wrong niks

aan curries to hear from you

wat framework you would like to seek

offert in een next video kom en down

below and subscribe if i don't want to

miss out of youtube content as usual

thanks for watching and don't forget en

lower smart together the brilliance see

you next time

[Muziek]