The relative importance of value creating activities could be varied depending

The relative importance of value creating activities

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The relative importance of value-creating activities could be varied, depending on the company's position in a broader value chain, including Upstream value chains (towards suppliers) and Downstream (towards customers), or relevant partners in the process of providing products and services to end users. 4. The rapid global growth of internet-based information search and communication activities is changing resources to create potential advantages for most industries. Information is now available on the internet, entertainment services are introduced on the internet, cloud and mobile services, all of which are activities that create value and contributing to the creation of competitive advantage in many industries; they make rapid but significant changes to sources of competitive advantage through properties such as ease of connectivity, convenience, and availability of internet services. 5. help managers to consider and separate business activities into a series of activities that need to be performed in a sequence to create products or services. 6. The value chain approach has separated the activities of the company into a group of supportive activities and mainly, then, continue to break down into specific activities to examine them in a specific way. 7. When determining the operational costs of each specific activity, administrators recognize which section that they do well or not, and identify activities that really meet the needs of their customers. C. Google’s value chain analysis 1. INTRODUCTION: Google is one of the largest companies in the US having a worth of 23 billion dollars with soaring share prices and soaring heights of profits. Google’s fame is not only related to its search engine and advertising services but also with how it treats its employees. The culture being followed in Google is highly innovation centered. Such high level of innovation which is unrestricted results in many of its employees leaving to start their own ventures, such as in the case of Twitter which was started by the company’s former employee. Google has implemented, since the beginning, a highly unconventional and unique administrative system that has been given the name of ‘Chaos’ by design. 2. VALUE CHAIN ANALYSIS (Benefiting from No-Cost Inbound Logistics): Google value-chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business.
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Primary Value Chain Activities - Inbound Logistics It can be argued that Google generates the greatest value in inbound logistics activities compared to other activities. Google’s core business is search engine. Internet users use Google Search to find information they need, therefore the list of content generated as search results can be specified as ‘product’ provided by Google. The content Google generates as search result is created by private and organizational internet users and it comes to Google free of charge.
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  • Winter '17
  • WELCH, IVO

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