value chain analysis.docx -...

This preview shows page 1 - 3 out of 10 pages.

- Chain-Analysis Value Chain Analysis Of Huawei Posted by Taylor Byrne on Sep-23-2018 1.1 Advantages of conducting Value Chain Analysis of Huawei Value Chain Analysis of Huawei can offer various advantages: 1.1.1 Identify competitive advantage sources By conducting the Value Chain Analysis of Huawei during the planning process, possible sources of competitive advantage can be identified. The firm/company is a collection of different activities that share relatedness to some extent. Huawei cannot trade all activities in the external market. The Value Chain approach suggests that a company can consider these activities as economic rent sources. These activities can also act as barriers to new entrants or cause cost disadvantages to competitors. 1.1.2 Identify complex inter-relationships and interdependencies Huawei can identify various internal and external linkages among activities through the value chain lens. The internal linkages are- interrelationships between activities within same organisational units and external linkages are between business units of same or different firms. Studying these interrelationships can help a company take benefit from coordination and joint optimisation. 1.1.3 Improved flow of materials, information and finances The use of Value Chain Analysis can optimise the finances, products and information flow. The improved information flow can help the company identify and exploit new opportunities and reduce external threats. The continuous Value Chain evaluation can result in timely filling important gaps that may affect a firm's productivity. The effective implementation of the Value Chain Analysis of Huawei can improve the material and product flow due to improved demand and sales forecasting. The inventory management also improves as Huawei can minimise the delays by tracking activities throughout the supply chain. Modern customers place high importance to the quick response and convenient access to the important product related information. The unexpected interruption in the information flow can affect the customer-supplier relationship. Huawei Value Chain Analysis and its implementation can highlight and remove the bottlenecks to the information flow. 1.1.4 Formulate effective firm-specific strategies
Huawei Value Chain Analysis can be used in the competitive strategic decision-making process. However, choosing the right competitive strategy (cost leadership, differentiation or focus) requires knowledge of own and rivals’ cost structure. 1.2 Challenges associated with Value Chain Analysis of Huawei The company may lose its vision and overall strategy by dividing operations into different activities. Dividing the operations into primary and support activities may not be separable due to increased complexity.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture