La Cadena de Valor de Michael Porter
Understanding Michael Porter's Value Chain
Introduction to the Value Chain
- The video aims to explain the value chain concept introduced by Michael Porter in 1985 in his book "Competitive Advantage."
- Michael Porter is recognized globally as a leading authority on competitiveness, business strategy, and value creation.
Overview of the Value Chain Concept
- The value chain is a management tool developed by Porter for internal analysis of a company by breaking down its main value-generating activities.
- It is termed a "value chain" because it views key company activities as links in a chain that add value to products as they progress through each stage.
Competitive Advantage Through the Value Chain
- A company has competitive advantage when it can increase its margin by either reducing costs or increasing sales.
- All companies have a value chain consisting of activities from product design and input procurement to distribution and post-sale services.
Primary vs. Support Activities
Primary Activities
- Primary activities are directly related to production and marketing, including:
- Inbound Logistics: Activities related to receiving, storing, and distributing inputs for production.
- Operations: Processes that transform inputs into final products.
- Outbound Logistics: Storage of finished products and their distribution to consumers.
- Marketing & Sales: Activities aimed at promoting and selling the product.
- Service: Provision of complementary services such as installation, repair, and maintenance.
Support Activities
- Support activities add value indirectly but are essential for primary operations:
- Firm Infrastructure: Includes planning, finance, accounting functions supporting overall operations.
- Human Resource Management: Involves recruitment, training, and development of personnel.
- Technology Development: Focuses on R&D necessary for supporting other activities.
- Procurement: Related to purchasing processes for inputs needed in production.
Analyzing Margins within the Value Chain
- Margin is defined as the difference between the value added by an activity and its associated cost; understanding this helps identify strengths and weaknesses within a company’s operations.