Porters Value Chain Analysis
Primary Activities
Inbound Logistics
Building trusting connections with suppliers is crucial since they provide the assistance
needed to acquire, store, and distribute the product. Without looking at in-bound logistics,
Kia Motors may run into a number of problems during the product development process. An
organisation must analyse all facets of transformation, from raw materials to completed
goods, when doing in-bound logistics analysis. Retrieving raw materials, keeping the inputs,
and internally dispersing the raw materials and components to begin production are some
instances of inbound logistics.
Operations
When raw materials are delivered and Kia Motors is prepared to turn them into finished
goods and market them, the significance of analysing operational activities increases.
Machine work, packing, assembling, and testing are a few instances of operational activities.
This includes servicing and maintaining equipment as well.
Both manufacturing and service operations are included. To increase productivity, maximise
efficiency, and ensure Kia Motors' competitive performance, operational activity analysis is
crucial. Kia Motors may be able to generate constant economic growth, boost profitability,
and create a strong competitive edge with the support of the increased productivity.
Outbound Logistics
The operations involved in delivering a product to a client after going through various
middlemen are referred to as outbound logistics. Material handling, warehousing, planning,
order processing, transportation, and delivery to the destination are some examples of
outbound logistics activities. In order to uncover sources of competitive advantage and
meet its goals for company expansion, Kia Motors can analyse and optimise outbound
logistics.
Because customers are more satisfied and there are more prospects for the company to
grow when outbound activities are timely managed with optimal prices and minimal
negative effects on product quality. When Kia Motors is offering perishable goods that must
be delivered quickly to the end user, it should give its outbound value chain activities special
attention.
Marketing and Sales
In order to convince clients that its offering is superior than that of rivals, Kia Motors will
now emphasise the advantages and points of differentiation of the items supplied. Until Kia
Motors makes an investment in its marketing and sales efforts, delivering a high-quality
product with competitive prices and unique features won't generate value. Here, sales
representatives and marketers are crucial.
The sales force, advertising, promotional activities, pricing, channel selection, quoting, and
fostering relationships with channel participants are a few examples of Kia Motors'
marketing and sales activities. The business can organise its marketing and sales activities
using the marketing funnel strategy. Depending on the corporate goals, brand image,
competitive dynamics, and present market conditions of Kia Motors, marketing tactics can
either be push or pull in nature.
Effective and carefully considered integrated marketing initiatives may strengthen Kia
Motors' brand equity and make it stand out from the competitors. However, Kia Motors
must refrain from making erroneous promises about product features that the production
team cannot provide. It suggests that coordination between various value chain operations
is necessary.
Services
The pre- and post-sale services provided by Kia Motors will be crucial in fostering repeat
business. Post-sale services are just as crucial to today's consumers as marketing and
promotional efforts. In the modern, technologically enabled world, the influence of bad e-
WOM brought on by subpar support services cannot be understated. In order to protect the
reputation of the brand and to promote positive word-of-mouth through prompt, effective,
and timely support services, the company must analyse its support activities.
Secondary Activities
Firm infrastructure
The infrastructure of the company refers to a variety of tasks, including quality control,
resolving legal issues, accounting, financing, planning, and strategic management. Kia
Motors may be able to maximise the value of the entire value chain with the help of
effective infrastructure management. Kia Motors can manage infrastructure expenditures,
also known as overhead expenses, to improve its competitive positioning in the market.
Human resource management
By assessing several HR factors, such as hiring, choosing, training, rewarding, performance
management, and other personnel management operations, Kia Motors may analyse
human resource management. Based on the motivation, commitment, and abilities of its
workers, Kia Motors may lessen competitive pressure through effective HR management. By
comparing the expenses of hiring and training with their respective returns, the business
can also achieve its cost-minimization goals. The importance of this value chain support
activity will expand due to Kia Motors' significant reliance on employee talent.
Technology development
Nearly all value chain activities rely on technology support in today's modern,
technologically evolved society. Kia Motors must acknowledge the significance of
technology development given the technological integration in the company's activities
related to production, distribution, marketing, and human resources. It can be broken down
into technological development activities for products and processes. Examples include
automation software, customer service assisted by technology, product design research,
and data analytics. This category includes Kia Motors' research and development division.
Procurement
The activities involved in acquiring the inputs, which can include machinery, supplies, raw
materials, equipment, and other items required for making the finished product, are
referred to as procurement in the value chain. Kia Motors should carefully analyse its
procurement efforts to optimise the inbound, operational, and outgoing value chain given
its linkage with numerous value chain activities.
