Value Chain Analysis according to (2006) is a systematic approach in scrutinizing the development of competitiveness in the company. The chain consists of series of different activities:


 


Primary Activities:


 


Inbound Logistics. The company receives goods from the suppliers. Goods are usually stored until they are needed.


           


Operations.This is where the products are manufactured and in the case of the supermarket arranged. In the supermarket it includes packing of foods, beverages, etc.


 


Outbound Logistics.The goods are finished and must be sent to retailers or consumers.


 


Marketing and Sales. In these stage the company offers the consumers its specific needs. This area focuses more on communication with the consumers and promotions of the product.


 


Service. In Service it includes installation of products, services after the product is sold, and complaints of the consumers.


Support Activities:


 


Procurement. This area is where the company purchases the goods and services. Procurement’s goal is to find the lowest price possible of a product in the highest quality.


 


Technology Development. Technology is a very relevant source of competitiveness in the company. It includes internet marketing and upgrading the systems of the company.


 


Human Resource Management (HRM). Employees of the company plays an important role in the progress of the company. The company must recruit, manage and train these personnel.


 


Firm Infrastructure. This activity is driven by corporate and strategic planning. It includes mechanisms for the control in the accounting department.


 


 


The  Centre for Retail Studies (2004), discusses that over the past years the shopping and grocery habits of Australians have altered. The factors that contribute to these changes are: population changes, size of households, new retailing practices and changes in lifestyle.


Nowadays Australian consumers are more health-conscious The Australian supermarkets saw this trend on consumers, the companies promoted healthy nutritious foods by expanding the fresh and health sections in different supermarkets.


Shopping habits of Australian consumers changed dramatically in just a span of four years, a number of consumers. According to Service Audits and Market Research in 2002 about 62% of Australian consumers do quick short trips to the supermarket more often, they spent less than one hour shopping while back in 1998 there were only 28%.


Australian supermarkets created new formats in order to provide the customers convenience, speed and freshness. Only wet markets provide consumers with fresh products; nowadays grocery stores have food stores in shopping centres, shopping strips, neighborhood centres and convenience stores.  


 


            The three biggest supermarkets in Australia are Woolworths, Coles Myer and Aldi. Woolworths is the largest supermarket chain in Australia according to  (2006) it is the largest food retailer in Australia and New Zealand, largest takeaway liquor retailer, and the largest Hotel and Poker Machine operator in Australia.


            Woolworths are divided into different sections. The Non-trade, Service, Service Deli, Seafood, Bakery, Proprietary Bakery, Meat, Produce, Perishables, Long Life, Long Life Variety, Long life Night fill, Liquor and Fuel. Value chain analysis is important because these products and services must be in excellent quality because these are the basic needs of consumers. By using Value Chain Analysis, the company can identify and separate good procurement from bad ones, and the excellent ones are assembled in the shelf of the groceries.


 (1990) discussed that the Woolworth’s Management Philosophy is always applied in its daily operations. The approach of managers is to try new ideas and test it if it will be productive or not.  Woolworth also emphasizes human as one of the factors. Woolworth is a company committed in having and giving excellent performance.


 


Coles is the second largest supermarket in Australia according to (2006) it is founded in 1914 and was called “Coles Variety Store.” Coles has the following departments; Bake house, Dairy, Delicatessen, Fresh Produce, Grocery, Meat, Service, Liquor, General Merchandise and apparel and Overhead. The implications of using the Value Chain Analysis in Coles is the company become more competitive just like when it merged with the oil company shell to produce cheap gas. It paved way for other companies such as Woolworths to have also a deal with another oil company thus making the market more competitive. The  Centre for Retail studies (2004) also added that by using the Value Chain Analysis Coles Myer came up with ideas for low-pricing strategy not similar with the ones from Woolsworth.


            According to (2006) Aldi is an international discount supermarket chain. It is based in Germany and is divided to Aldi Nord and Aldi Sud. Aldi speciales in items that are often used by the consumers like food and beverages. Aldi has its own products and gives limited shelf to outside brands. The impact of using Value Chain Analysis by  is that it provides more cheaper products to the consumers. In the past months, according to the Centre for Retail Studies,(2006) the cheaper products that Aldi gave the consumers impacted both the two biggest supermarkets in Australia, the Coles Myer and Woolworths. The companies came up with different strategies like Everyday low pricing (EDLP) and Save Everyday strategies. Value chain analysis is a tool that helps companies to be more competitive, deliver good products and services at the excellent quality in a cheaper price.


           


 


 


 


 



 



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