We make decisions, consciously or unconsciously, based on experiences that lead us to the conclusion of which path is the most appropriate. It works like a funnel: from the moment the evaluation criteria are listed, there is more precise guidance for decision-making. Therefore, the alternative that includes all or at least most of the estimated parameters tends to be selected.
Thinking about the immensity of possibilities when choosing a brand, Professor Michael E. Porter created the chain of value, which is nothing more than an analysis and management tool that aims to generate differentiation of the product delivered to the customer. In order to stand out in the market, it is necessary not only to offer quality but also to add value to the business or product – always taking into account the shorter terms and costs for the company.
How to build a value chain
The elements that need to be related to develop a value chain are the primary activities, fundamental to the beginning of any process , and support activities, used as non-material support.
Primary activities
These are those that act directly in the realization of the company’s product or service. See the steps of the process.
Inbound logistics
Here comes the whole set of factors that start production work. This stage includes the receipt, storage and distribution of inputs, as well as the relationship with raw material suppliers. The company must prioritize some aspects in order to maximize profits, control costs and deliver quality.
Operations
This is the execution step. The products are materialized and generate value for the business. Keep in mind that at this point it is essential to value the differentials that the company offers through its products.
Outbound logistics
It is the activity that contemplates the destination of the company’s product. Here, the distribution part is fundamental to the success of the business.
Marketing and sales
A good product, which is easily found in the market and has high added value, needs to be well publicized and sold. The marketing and sales stage is essential for consumers to get to know the company, understand the value of the product and choose it to meet a certain need.
Service
The consumer also looks at post-acquisition. Even if it is the final step, support needs to meet with quality and efficiency the demands that may arise in relation to the purchase.
Support activities
These activities support the primaries, and they are not material. This system includes cognitive processes related to the company and the goods produced. These operations happen simultaneously, differently from the primary activities, which happen in a chain.
Acquisition and purchases
It is the way the organization obtains the resources necessary to start the execution of the material good.
Human resources management
Producing goods requires trained people. Those responsible for the sector have the task of optimizing all the company’s human capital.
Technological development
The source that calculates work speed and operating costs, technological development needs to be present for the organization to get the job done more accurately, in less time and with less expense.
Infrastructure
The part that expresses the organization’s seriousness and commitment, the infrastructure is the basis of all business management. It is at this stage that all sectors meet to demonstrate the brand value.
Valued company
It is essential to specify the fundamental values of the company and make them an extension of the brand, so that success is the result of the sum of the activities carried out, and the balance remains favorable.
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