The value chain of porter
A value chain describes the categories of activities within and around an organisation, which together create a product or service.
The value chain is a set of steps which determinate the capacity of a company to obtain a competitive advantage. There are 2 kinds of activities:
- The primary activities which participate directly to the creation and the selling of the product.
- The support activities which help the main activities and form the company's infrastructure.
PSP's value chain is better in technology environment. In fact, PSP's technicians created a machine for cutting and working of the metal rods which reduced the cost price. There are a lot of technological barriers.
Furthermore, PSP produce its own products. In fact, PSP bought Schmitt and Brendel. So PSP became the manufacturer of a finished, decorative product.
Direct Duties of a firm :
Purchase Production Logistics Marketing-sale Service
-Purchase of plastic and metal components: China -2 places : France and China
-Production integrated (acquisition of his wood subcontractor and his main assembly consumer B&C) -Flux control -Marketing service (created in 2000)
-Participation in three trade shows
-High reputation -Customer Service of high quality
Support Duties of a firm :
Financial Support Human Resources Technology Resources Organizational Resources
-Firms quoted in stock exchange
-Firms which have shareholders
-Possessed Customer debts
-Possessed Financial Debts
-Possessed Supplier Debts -R&D Service: managed by Maurice Lauzet with 14 persons
-Marketing Services: 3 persons
-Sales : 11 persons
-1 Sales and Marketing Manager
-1 CEO -Good service R&D
-Technology based on innovation and design -Creation of marketing and R&D department
-Organization structured of sales : France and Export
-Repurchase of a factory in Quingey
-Integration of activities contracted out.
Organization into a hierarchy of resources and abilities
Strong