38326441-value-chain
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8/7/2019 38326441-Value-Chain
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Name: SUWEETA LOHANO
ID: 4700
COURSE: MARKETING MANAGEMENTRESEARCH
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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