September 10, 2008

Today, we discussed further about the value chain concept and the differences between Apple, Dell, and Zara.

UPC (Universal Product Code) and RFID (radio frequency identification), are used in many products to track inventory and purchase.  Apple’s segmentations are the X and Y generations. Apple is trendy, creates a community, high value/differentiation, good functionality, has consistency, value customer input, and has design/leading edge technology.  Zara treats customers as fashion experts and values their opinion on clothing line and if a trend is found, they implement it.  Dell allows customers to customize their computer. The customization is limited to the base of the hardware and cannot start from scratch. They have just-in-time inventory that allows for faster delivery. Dell’s manufacturers such as processors factory are nearby for fast delivery to Dell.

The Value Chain Concept by Michael Porter provides a useful basis for understanding How the enterprise produces value for its customers.

1. Value chain is the integrated channel that stretches from suppliers through the producer and on to the end user.
2. Value chain in the internet means the seamless, end-to-end integration of activities throughout the channel of distribution.
3. Business processes: The Supple Chain & The Channel of Distribution

The Value Chain Concept: Supply Chain >>> Manufacturer >> Channel of Distribution > End User

The Supply Chain is the downstream portion of the value chain, it’s the channel from the suppliers to the producers.