![]() ![]() How far upstream or downstream do the industry’s activities extend? What are the key value-creating activities at each step in the chain?Ĭompare the value chains of rivals in an industry to understand differences in prices and costs Step 1 - Start by laying out the industry value chain Key Steps in Porter's Value Chain Analysis When all rivals in the Ofs Fargo’s industry try to compete on the same dimension, no one firm gains a competitive advantage. Competitive advantage is about superior performance and it is a relative term. If Ofs Fargo have a real competitive advantage, it means that compared to its rivals Ofs Fargo is - operating at lower costs, commanding a premium price, or doing both. The strengths of the Porter’s Value Chain Analysis are - how it disaggregates various activities within the firm and how it put value to value creating activities in an industry wide context.Īccording to Michael Porter – “If a strategy is to have real meaning then it should reflect directly into a company’s financial performance”. To conduct industry structure analysis Porter developed Five Forces Model, and to understand the sources of competitive advantage of the firm in relation to competitors in that industry Porter developed Value Chain Analysis Method. He answered the question in two parts – How companies benefit or limited by the structure of their industry, and second a firm’s relative position within that industry. Porter started with the quintessential question – “Why are some companies more profitable than others?” According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. ![]() Value Chain is also known as “Porter’s Value Chain Framework” and it is extensively used to analyze relevant activities of a firm to shed light on the sources of competitive advantage. Value Chain was first introduced in 1985 in Harvard Business Review article and Porter’s book “Competitive Advantage”. Porter and it was a major breakthrough in business world for analyzing a firm’s relative cost and value. Value Chain is developed by management guru Michael E. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, competitive advantage, steps to value chain analysis,industry analysis,primary activities, support activities, inbound outbound logitics,marketing & services, and more. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Balanced scorecard, Change management, Entrepreneurship, Financial analysis, Financial management, Internet, Social responsibility, Strategy execution, Workspaces. ![]() ![]() The Wells Fargo Online Financial Services (A), Spanish Version (referred as “Ofs Fargo” from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Wells Fargo Online Financial Services (A), Spanish Version case study is a Harvard Business School (HBR) case study written by Robert S. Related Areas : Balanced scorecard, Change management, Entrepreneurship, Financial analysis, Financial management, Internet, Social responsibility, Strategy execution, WorkspacesĮMBA Pro Porter Value Chain Analysis Approach for Wells Fargo Online Financial Services (A), Spanish VersionĪt EMBA PRO, we provide corporate level professional Marketing Mix and Marketing Strategy solutions. The OFS group believed that the Balanced Scorecard would allow them to develop a set of integrated, multidimensional measures to assess performance against its goals and to communicate and update its strategy in a rapidly changing environment.Ĭase Authors : Robert S. For example, the group was not yet profitable, yet it provided a critical component to the bank's long-term strategy. Yet OFS management believed that its business could not be measured and evaluated on the basis of financial metrics alone. Wells Fargo had a culture that embraced financial metrics. OFS was finding it difficult to balance the need for a clearly articulated strategy and measurable objectives with the flexibility required in its dynamic environment. The new division faces rapid change and must invest heavily in new technology and in the development of innovative products and services. The OFS group develops and supports services that allow existing and future banking customers to perform transactions via the Internet. Wells Fargo, the industry leader in electronic banking, has implemented a Balanced Scorecard in its online financial services group (OFS) to track and measure performance. EMBA Pro Porter Value Chain Solution for Wells Fargo Online Financial Services (A), Spanish Version case study ![]()
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