Value Chain Analysis: Literature Review and Application on Ikea
November 28, 2012
November 28, 2012
Aisling Lynch
C09687271
Aisling Lynch
C09687271
Stratgic management the value chain concept: literature review and application analysis on IKEA
Stratgic management the value chain concept: literature review and application analysis on IKEA
Contents
* Introduction * Origination * Porter’s Value Chain Concept * Linking of the Value Chain * Focus on External Sources * The Future - Conclusion * Ikea Example * References
Declaration
I, the undersigned, declare that this report is entirely my own written work, except where otherwise accredited, and that it has not been submitted for a degree or other award to any other university or institution.
Introduction
Since the 1980’s academics have been pointing to a firm’s own activity pool for analysis, as a way of determining competitive advantage. It was in 1985 that the term “Value Chain” was coined by Michael Porter (Porter 1998) and all its subsidiary headings. I will look at some of the literature surrounding the Value Chain concept to see how it has evolved and changed since its beginning two decades ago. Using this literature I will see what recommendations are cited to carry this concept into the future with an ever more globalized market. Finally an application of this literature will be carried out on Ikea: a global company that has changed with market trends when necessary to stay a top player in its industry.
Origination
Kippenberger identifies in his research, how the idea of analyzing internal activities as a source of competitive advantage began in the early 1980’s with McKinsey’s Business Systems Concept (Kippenberger 1991). Through this concept, firms could look at their own activity pool and performances and compare these to that done of their competitor. This comparison would then act as a source of competitive advantage.
Michael Porter took influence from this research and began to fine tune it even further. His creation of the Value
November 28, 2012
Aisling Lynch
C09687271
Aisling Lynch
C09687271
Stratgic management the value chain concept: literature review and application analysis on IKEA
Stratgic management the value chain concept: literature review and application analysis on IKEA
Contents
* Introduction * Origination * Porter’s Value Chain Concept * Linking of the Value Chain * Focus on External Sources * The Future - Conclusion * Ikea Example * References
Declaration
I, the undersigned, declare that this report is entirely my own written work, except where otherwise accredited, and that it has not been submitted for a degree or other award to any other university or institution.
Introduction
Since the 1980’s academics have been pointing to a firm’s own activity pool for analysis, as a way of determining competitive advantage. It was in 1985 that the term “Value Chain” was coined by Michael Porter (Porter 1998) and all its subsidiary headings. I will look at some of the literature surrounding the Value Chain concept to see how it has evolved and changed since its beginning two decades ago. Using this literature I will see what recommendations are cited to carry this concept into the future with an ever more globalized market. Finally an application of this literature will be carried out on Ikea: a global company that has changed with market trends when necessary to stay a top player in its industry.
Origination
Kippenberger identifies in his research, how the idea of analyzing internal activities as a source of competitive advantage began in the early 1980’s with McKinsey’s Business Systems Concept (Kippenberger 1991). Through this concept, firms could look at their own activity pool and performances and compare these to that done of their competitor. This comparison would then act as a source of competitive advantage.
Michael Porter took influence from this research and began to fine tune it even further. His creation of the Value
References: 1. Collins, L. (2011, October). How Ikea transformed home furnshings: The New Yorker. Retrieved from The New Yorker: http://www.newyorker.com/reporting/2011/10/03/111003fa_fact_collins 2 3. Ikea. (2011). Ikea Distribution. Retrieved from Ikea: http://www.ikea.com/ms/en_US/jobs/business_types/distribution_logistics/index.html 4 5. Johnson, G. S. (2005). Exploring Corporate Strategy. Essex: Pearson Education Limited. 6. Kippenberger, T. (1991). The value chain: the original breakthrough. The Antidote, 2(5), 7-10. 7. Lancaster, G. W. (2000). Implementing value strategy through the value chain. Management Decision, 38(3), 160-178. 8. Lusch, R. W. (2011). A Stakeholder-Unifying, Cocreation Philosophy for Marketing. Journal of Macromarketing, 2(31), 129-134. 9. Normann, R. R. (1993). From Value Chain to Value Constellation: Designing Interactive Strategy. Havard Business Review, 71(4). 10. Porter, M. E. (1998). Competitive Advanage: Creating and Sustaining Superior Performance. New York NY: The Free Press. 11. Webster, F. E. (1988). The Rediscovery of the Marketing Concept. Business Horizons, 2(13), 29-39.