Marketing Strategy and Competitive Positioning pdf ebook

Value-chain analysis
Porter (1985) identifies five primary activities that add value to the final output of a company 
(see Figure 5.5). Areas where value is destroyed or eroded can also be identified through this 
technique.
1 
Inbound logistics involves managing the flow of products into the company. Attention to 
just-in-time manufacturing has shown how important this can be to the efficient opera-
tion of a company and how by management of its suppliers and their quality a company 
can add to the quality of its final products.
2 
Operations have, for some time, been seen as a central activity of businesses. These 
comprise the processes whereby the inbound items are changed in form, packaged and 
tested for suitability for sale. Traditionally, this has been seen as the area where value 
is added to a company’s products. At this stage, value can be added beyond the normal 
capital and manpower inputs by the maintenance of high quality, flexibility and design.
3 
Outbound logistics carry the product from the point of manufacture to the buyer. They 
therefore include storage, distribution, etc. At this stage, value can be added through 
quick and timely delivery, low damage rates and the formulation of delivery mechanisms 
that fit the operations of the user. The reverse is clearly also true and can destroy value. 

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CHAPTER 5 COMPETITOR ANALYSIS
Much of Amazon’s success is based on effective logistics and innovation in this impor-
tant area. Through a network of delivery teams and drivers, Amazon established a solid 
reputation for reliable and timely delivery of orders. Not content with this, however, 
Amazon has recently invested in innovations designed to further enhance customer expe-
rience and alleviate concerns, such as Amazon Key (allowing delivery personnel to access 
customer homes to make secure deliveries) and Amazon Prime Air (drones delivering 
small packages within 30 minutes of a customer ordering) – although the latter, at the 
time of writing, is still at the test stage.
4