38326441-value-chain

8/7/2019 38326441-Value-Chain

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Name: SUWEETA LOHANO

ID: 4700

COURSE: MARKETING MANAGEMENTRESEARCH

8/7/2019 38326441-Value-Chain


8/7/2019 38326441-Value-Chain


VALUE CHAIN ANALYSISOF TOYOTA Indus Motors Co.

The value chain is a systematic approach to examining the development of

competitive advantage. It was created by M. E. Porter in his book, Competitive

Advantage (1980).The chain consists of a series of activities that create and buildvalue. They culminate in the total value delivered by an organization. The

'margin' depicted in the diagram is the same as added value. The organization is

split into 'primary activities' and 'support activities

Primary Activities

Inbound Logistics:

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Here goods are received from a company's suppliers. They are stored until they

are needed on the production/assembly line. Goods are moved around the

organization. Toyota motors purchase their raw material from all around the

world. In order to maximize their availability of raw material Toyota motors

maintain good relationship with their suppliers. Toyota use JIT (Just In Time)

approach for handling of raw material.

Operations:

This is where goods are manufactured or assembled. Individual operations could

include organizing the parts to make new cars & the final tune for a new car's

engine. Toyota motors are known for their reliability which comes from efficient

operations.

Outbound Logistics:

The goods are now finished, and they need to be sent along the supply chain to

wholesalers, retailers or the final consumer. Toyota motors manage their own

Showrooms in different countries. Toyota motors make their product easily

assessable.

Marketing and Sales:

In true customer orientated fashion, at this stage the Toyota motors prepares the

offering to meet the needs of targeted customers. This area focuses strongly

upon marketing communications and the promotions mix

Service:

This includes all areas of service such as final checking, after-sales service, and

complaints

Handling, training and so on. Toyota value their customer

Support Activities

Procurement:This function is responsible for all purchasing of goods, services and materials.

The aim is to secure the lowest possible price for purchases of the highest

possible quality. Toyota motors will be responsible for outsourcing (components

or operations that would normally be done in-house are done by other

organizations), and e-Purchasing (using IT and web-based technologies to

achieve procurement aims)Technology Development:Technology is an important source of competitive advantage. Companies need to

innovate to reduce costs and to protect and sustain competitive advantage.

Toyota motors implemented production technology, Internet marketing activities,

lean manufacturing, Customer Relationship Management (CRM), and many

other technological developments

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Human Resource Management (HRM):Employees are an expensive and vital resource. Toyota motors manage

recruitment and selection, training and development, and rewards and

remuneration. Toyota motors consider their employees as HUMAN CAPITAL.

The mission and objectives of the Toyota motor is the driving force behind the

HRM strategy.

Toyota motors uses following techniques to retain their employees:

•Recruitment

•Selection

•Training and development

•Compensation

•Maintenance

Firm Infrastructure:This activity includes and is driven by corporate or strategic planning. Toyota

motors implemented Management Information System (MIS), and other

mechanisms for planning and control in different departments

38326441-value-chain

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