Porter's Value Chain Research Articles

Strategic Competition of Internet Interfaces for XU30 Quoted Companies

 Abstract—Internet is causing paradigm shifts on almost every aspects of the life. One major paradigm shift also occurs on the strategic competition field. The new strategic competition is studied based on Porter's value chain analysis and Internet can be considered as a technological improvement on the information and communication technology, which can also be considered as an interface between companies and the environment. The company/environment interface is directly related to the strategic competition and Porter's five forces. By the new paradigm of information and communication, companies should pay a great attention on their Internet based reputation built on the Internet based interfaces. For example, a company with millions of shares on the social media has an obvious advantage over a company on the same sector without any web page. In this study, the companies are criticized by their Internet interfaces, which are social media interfaces such as Facebook or Twitter and company web pages and blogs measuring hate-marks and love-marks of the companies and Web 2.0 sources such as wikis. After collecting statistical information about these Internet interfaces of each company on Internet interfaces, the companies are indexed based on their Internet interface utilization. Furthermore a new model of competition based on Porter's value chain analysis is built and applied for the Internet interfaces.

“Optimizing Advertisement Targeting Based on Colour and Devices”

Over the last few years, we have seen revolutions in the internet technology and its adoption in advertising industry. Internet has become the common platform across the world where people visit different web sites for different type of their interests. It is also the cheapest media where they can place their advertisements as compared to other media like newspapers, Radio, TV etc. And hence we thought of putting a basic idea of exploring this smart era of smart devices and using the same for targeting advertisements along with traditional parameters like colour optimizations. In the project we will be implementing client server architecture for displaying and tracking the advertisements. A data store will be implemented using HDFS which will process data coming through advertisement tracking and also give efficient read and write operations for advertisement targeting. A statistical model will be implemented using statistical and probability based algorithms, which will provide feeds to server component to display the targeted advertisement. A device detection layer will also be implemented. I. Introduction In the field of e-advertisements, presenting ads and sales are combined together using hypertext or hypermedia to the nearest retailer or e-shops. So, targeted advertisement could be mentioned as an effective solution in the field of marketing on the web. Scientists have been focused on various variables and features that could be considered to target users in an appropriate way. While mentioning them, some new features are added. In this article, a framework has been proposed which facilitate targeted advertisements; using user interaction with previous advertisements and their interest. This system is used as a tool to target each user according to its preferences and interests. The main goal is to show the most effective advertisements and attract users to share word of mouth (WOM) advertisements with each other. Considering user's type through their activity in a social network and omitting repetitive advertisements ease is our aim. Marketing is listed as a primary activity in Michel porter's value chain model and it has a critical role in each business(2). Lots of researches have been performed for finding suitable methods of targeted advertising and making the most impression possible on people. This paper's main goal is not only to fascinate customers, but also to make an improvement in the field of advertising. Users are considered as potential customers and having exact and precise information about each user, would guide us to recommend useful goods or services to them according to their own interests and tastes. This is a good solution to overcome data's redundancies, which is the problem of information century. Receiving information in a proper time could increase user's satisfaction and it is an important issue in customer relationship managements. Using a constant advertisement for many times could cause inattentiveness and ignorance to advertisements in web pages and even the media. The availability of internet and growth of intranets cause e-commerce be mature. Web 2.0's interactivity property and arising social networks, result in having social networks as an appropriate media for targeting advertisement. Targeted advertisements are based on recognizing users well. In case of advertisement locations there were two aspects, the first one was the webpage and the second one was using word of mouth (WOM) to spread advertisement. In this paper, it is tried to use all improvements which prior researches made and also some new ideas to make the targeted advertising system more powerful. Having reviewed basic concepts and related works, the new framework will be illustrated.

In situ dynamics of Japanese electronic subsidiaries in ASEAN countries: Reflections from a development perspective

AbstractThis paper contributes to the theory of subsidiary evolution in multinational corporations through utilising a value chain approach. It assesses the changing activities of the branches of Japanese electronics firms located in Southeast Asia (the ASEAN region) since the 1997–1998 financial crisis. In the paper, we argue that a modest development of Japanese subsidiaries has occurred in this region during the past 10 years or so. We connect models of subsidiary development to Michael Porter's value chain in the results of a set of interviews with 37 managers in the factories, sales offices and regional headquarters of Japanese subsidiary companies located in Singapore, Malaysia and Thailand. We show that decentralisation of management functions from Japan occurred in both primary and support activities of the value chain. However, corporate long‐term research and development did not disperse to Southeast Asia and is unlikely to in the near future. The article interprets these results and highlights the need for further research relating to the evolving geography of Japanese electronics multinational corporations and their subsidiaries in Southeast Asia.

From Value Chain to Responsibility Chain: The Social Responsibility of Multinational Corporations

This article tackles the nature and the scope of the social responsibility of multinational corporations towards men, the world and the natural environments in which they operate. We use the representation of the Porter value chain to address the question of corporate social responsibility. We show that there is a gap between the formal and visible commitments of multinationals and the actual reality of their practices and effects. After having explained the reasons that account for this gap, we propose the “footprint portfolio” concept as the cornerstone of the multifaceted and global corporate social responsibility of multinationals.

Impact of industry competition on contract manufacturing: An empirical study of U.S. manufacturers

Abstract Anecdotal evidence from U.S. manufacturers and literature from strategy and operations research suggest that industry competition may be driving firm contract manufacturing decisions. However, there is little empirical research regarding specific drivers of contract manufacturing, particularly the effect of supplier industry competition on the use of contract manufacturing in the focal industry and how this relationship may be conditioned and moderated by focal industry characteristics. Grounded in Porter's Five-Force Model and Value Chain Perspective, the current study purports to address this research gap through an empirical examination of a panel dataset on all U.S. manufacturing industries, collected from the U.S. Economic Census. Regression results show that contract manufacturing is positively associated with supplier industry competition and the association is further moderated by focal industry competition and IT investment.

The Impact of Mobile Telephony on Developing Country Enterprises: A Palestinian Case Study

AbstractThis paper aims to explore the use and impact of mobile telephony on the performance of companies in developing countries, through a nationwide survey comprised of thousands of enterprises representing a true sample of the business sector in Palestine. This paper complements studies that make the linkage between mobile communications and economic activities at micro or enterprise level. It analyses the adoption patterns and rational behind these patterns as revealed by the business owners and managers of Palestinian enterprises. Porter's value chain is used as a framework to assess the impact of mobile telephony in work processes.The survey covered thousands of enterprises of all sizes and economic activities, selected to embody a representative sample of the Palestinian business sector. It further explores the views of the owners and managers of these enterprises regarding the use of ICTs. The study reveals that mobile phones have meaningfully enhanced internal processes and the overall value chain. Most notably, mobile phones were effective in bridging the information and connectivity gap businesses in developing countries ordinarily suffer.The study has also found that small and micro enterprises gain from the use of mobiles the same as what large enterprises do, especially in mainstream operations like marketing and sales, information flow, and provision of customer services. This is happening at the time when there is a huge difference in resources between the two categories of enterprises. The study came to conclude that mobile benefits are not favoring one business sector from the other, in the sense that all business sectors are capable of tailoring mobile phone services to suit their needs.

Value Chain Flexibility with RFID: A Case Study of the Octopus Card

Octopus cards are an electronic payment system based on a wireless RFID technology developed in Hong Kong. Users simply hold their contactless smartcards over an electronic reader, and the payment is deducted from the card automatically. If users link their cards to their credit card to upload money, there is no cash transaction involved. Launched in 1997, Octopus cards are the world's most widely accepted contactless RFID electronic payment system. The system generates value for customers, service providers, and societies. This article makes a theoretical and applied contribution to our understanding of strategic information systems. It adopts and modifies Porter's value chain and develops value-chain flexibility as a theoretical framework to analyze the Octopus card system. The fast and dramatic changes in customer needs, business competition, and technological innovation are creating an urgent need for flexibility throughout the whole value chain. By looking at order fulfillment as a process, the shop outlet—either online or offline—is only part of the entire flow from customer enquiry to customer receipt. It is clear that no single idea could significantly reduce customer lead time. Only a total effort from organizations to increase flexibility and eliminate bottlenecks can make the kind of difference needed to compete ( Day, 1994 ; Blackburn, 1991 ; Yusuf, Sarhadi, & Gunasekran, 1999). Therefore, value chain flexibility must be broadly defined, and it should be applied in the service industry. In other words, organizations should be able to deal with the uncertainty along the value chain to meet customer demands. This framework analyzes how the Octopus card system creates value and, in doing so, identifies key implications for customers, service providers, and society

Antecedent and outcomes study on green value chain initiatives: a perspective from sustainable development and sustainable competitive advantage

Emergence of green value chain (GVC), aims to attain a harmonized socio environmental ambient besides financial fulfilment, has been perceived as an inevitable business trends in recent years. In this antecedent outcomes study, GVC initiatives in relation to sustainable development (SD) and sustainable competitive advantage (SCA) has been carried out via mailed questionnaires on 300 ISO 14001 certified Malaysian manufacturing firms. Results based on 30.0% response rate showed that risk management, corporate social responsibility, and socio environmental considerations stand out to be the three utmost important antecedents of GVC initiatives, and are being executed through green primary activities, and green resource and capability management. These in turn, lead to achievement of SCA in terms of financial and socio environmental performances. Establishment of such relationship adds considerably novel knowledge towards extension of Michael Porter's value chain model by linking it to SD driven forces at input and creating SCA at output besides uncover other practical benefits that can be gained thereof.

Creating patient value in glaucoma care: applying quality costing and care delivery value chain approaches

PurposeThe purpose of this paper is to explore in a specific hospital care process the applicability in practice of the theories of quality costing and value chains.Design/methodology/approachIn a retrospective case study an in‐depth evaluation of the use of a quality cost model (QCM) and the applicability of Porter's care delivery value chain (CDVC) was performed in a specific care process: glaucoma care over the period 2001 to 2006 in the Rotterdam Eye Hospital in The Netherlands.FindingsThe case study shows a reduction of costs per product by increasing the number of outpatient visits and surgery combined with a higher patient satisfaction. Reduction of costs of non‐compliance by using the QCM is small, due to the absence of (external) financial incentives for both the hospital and individual physicians. For CDVC to be supportive to an integrated quality and cost management the notion “patient value” needs far more specification as mutually agreed on by the stakeholders involved and related reimbursement needs to depend on realised outcomes.Research limitations/implicationsThe case study just focused on one specific care process in one hospital. To determine effects in other areas of health care, it is important to study the use and applicability of the QCM and the CDVC in other care processes and settings.Originality/valueQCM and a CDVC can be useful tools for hospital management to manage the outcomes on both quality and costs, but impact is dependent on the incentives in the context of the existing organisational and reimbursement system and asks for an agreed on operationalisation among the various stakeholders of the notion of patient value.

An Examination of Inter-Firm Cooperative Arrangements of U.S. Manufacturing Firms

This descriptive study examines inter-firm strategic cooperation over two specific periods: 1987 through 1993, and 1994 through 2002. Inter-firm cooperative arrangements were classified into Domestic and International and further classified by type using Porter's Value Chain framework (1985). Data on inter-firm strategic cooperation were drawn from announcements reported by US-based manufacturing multinationals. Using descriptive statistical analysis, namely, Crosstabs and Independent Two-Sample Tests, we found significant differences in the distribution of inter-firm announcements—Domestic and International and also by type of classification—over the time periods examined. Research implications are discussed

Click trading: A case study of Moneynet

Moneynet, launched in 1997, was the United Kingdom’s first comparison website in financial services. It enables its users to specify their needs and then select from suitable product providers, who in turn benefit from potential customers with refined needs. This article makes both a theoretical and applied contribution to the Information Systems literature. It develops an amended version of the Porter value chain, which it terms the click chain, as a theoretical framework which is then used to analyse Moneynet. This framework analyses how Moneynet creates value and in doing so identifies key implications for comparison websites and product providers.

Extracting business process decomposition

PurposeThis paper seeks to offer a step‐by‐step methodology to extract and model business processes with a focus on business process decomposition. The main motivation is the lack of repeatable measurable methods and techniques for extracting business process decomposition.Design/methodology/approachA step‐by‐step methodology for extracting business process models is provided. This methodology is called “the V methodology” because of its approach to break down the enterprise through a functional hierarchy and then collecting it up again via its process decomposition. Porter's value chain model is noticed as a powerful tool to complete the roadmap. The paper is designed using sections: benefits and necessities of having such a methodology, terminology, the V methodology, learned lessons and further work.FindingsSuccess stories using the V methodology expressing its impact on quality business process models are mentioned. Experts find it useful to gain unified process models as well as helping them to discover gaps, bottlenecks and redundancies amongst business processes.Research limitations/implicationsIt is too hard to receive reliable information about previous experiences from the working companies in the area.Practical implicationsThe main implications found when using the V methodology are: practiced analysts feel it dangerous to their position, younger analysts use it as the only source of modeling and people find it difficult to apply Porter's model in practice.Originality/valueAlmost all of the previous papers refer to modeling notations when using the term “methodology”. This paper instead describes the process of business process modeling. Another original value of the paper would be using Porter's model to classify the processes within their right process groups.

A review of eBusiness and digital business—applications, models and trends

In this paper the evolution of eBusiness or digital business is analysed. Firstly, a number of definitions are presented. Digital business is then analysed in the context of a clear distinction being drawn between applications and models. Reviews of the enablers and the drivers of eBusiness are also presented. Some conceptual models for understanding eBusiness are then reviewed and finally a new revised model is put forward. This so-called extended SCOR model, developed by combining ideas from the original Supply Chain Operations Reference (SCOR) model and Porter's Value Chain model is offered as a mechanism to map current eBusiness applications and models and may also be used to position and anticipate future eBusiness initiatives.

The cosmetics cosmos

PurposeProvides an analysis of four of the major players in the cosmetic industry, Avon, Revlon, Max Factor, and Estée Lauder.Design/methodology/approachBusiness analyses include SWOT, Porter's value chain and five forces, and financial study.FindingsOf the four companies studied, Avon is showing the most promise in terms of growth. Revlon and Max Factor need to be investing in their R&D in order to remain competitive. At the high‐price high‐reputation end of the market, it will be a long time before Estée Lauder start to suffer, even if they do make any wrong moves.Practical implicationsProvides strategic insights and practical thinking that have influenced some of the world's leading organizations.Originality/valueThe briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

The strategic virtual corporation: bridging the experience gap

As the knowledge drain in virtual organisations is much more significant than in traditional companies, an 'experience gap' between virtual corporations and traditional organisations may emerge over time. Hence, the often postulated advantage of the 'best-of-everything' organisation turns to a disadvantage. As a consequence, virtual corporations have to develop strategies to minimise the drain of experience in between their different projects. On an analytical base, this contribution depicts a new organisational concept for efficient project-based collaboration among value-creation partners to cope with problems such as knowledge drain, financial drain and inefficient learning processes in virtual organisations. Referring to the theoretical concepts of virtual corporations, Porter's value chain and the approach of the resource-based view, a new approach for the collaboration among business partners can be derived, which combines the advantage of loosely coupled organisations with traditional forms of collaborations. The new organisational concept is named 'Strategic Virtual Organisation'.

Comparative innovative business strategies of major players in cosmetic industry

PurposeThe cosmetic industry is a very lucrative, innovative, and fast paced industry where product innovation is the key to success. The purpose of this paper is to present a detailed analytical (qualitative) study of cosmetic industry in the global marketplace with a focus on the four market leaders in this industry relative to their business and innovation strategies.Design/methodology/approachBusiness analyses include Strengths, Weaknesses, Opportunities and Threats (SWOT), Porter's value chain and five forces, and financial applied to the four industry leaders.FindingsEach of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel.Practical implicationsThe industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative.Originality/valueThe research provides an in‐depth business analyses of cosmetic industry using SWOT, Porter's value chain and five forces and financial with results obtained that are generalizable to the entire cosmetic industry. Projections on the future of cosmetic industry are also presented.

Porter's value chain model for assessing the impact of the internet for environmental gains

The revolutionary potential of the internet promises to transform economic and environmental gains. By reducing the amount of energy and materials consumed by business, the internet stands to revolutionise the relation between economic growth and the environment. The internet is improving the capability to understand the science of environmental degradation and communicate that knowledge to public and private decision makers. It also helps decrease resource waste and associated pollution by improving the efficiency of economic activity and provides improved sensors and instantaneous telecommunications links to control pollution spillovers, better manage shared resources and reduce waste. This paper examines the impact and potential of internet-based technologies in the performance of important information and communication functions for resolving the environmental issues using Porter's value chain model. Managerial implications of using the internet for environmental gains for SMEs are also discussed.

A framework for an e-business curriculum

The global economy has been undergoing rapid structural changes in the last few years due to the growth of the Internet. In order to gain the first-mover advantage, companies are keen to add new 'e-elements' to their businesses. To cope with new challenges, managers must be cross-trained with broad knowledge. This has aroused general interest in acquiring the related knowledge. Educational institutions have responded swiftly to offer new related programmes. New dedicated e-commerce postgraduate streams have been established to meet the knowledge requirements of the new economy. Since the teaching and learning in this area are so new and the knowledge to be covered is broad, it is difficult to design a well-balanced programme to meet the needs of students. In this paper, we propose an e-business knowledge framework for supporting e-business teaching. This framework has been developed based on Porter's value chain theory. It can be used to help design and evaluate e-business programmes. We have applied the framework to evaluate dedicated postgraduate e-business programmes in Hong Kong.

A Conceptual Framework for the Process System Synthesis and Design Congruent with Corporate Strategy

Engineering activities have in some sense reached a mature level. It is, however, well recognized that the results have not satisfied the corporate strategy that was determined in advance. This is probably due to the lack of another context for reflecting on the corporate strategy in engineering activities, and this may lead to failure in the competitive global market. The present work intends to develop a conceptual framework for engineering activities, in particular, focusing on the process system synthesis and design that are most influential to the other activities and congruent with a corporate strategy. The new context for the process system synthesis and design emphasizes on value-added activities. The discussions are based on the well-known concept of Michael Porter's value chain and on the extensive application of Bellman's “the principle of optimality” in a modified form. Despite the need for ongoing strategic corporative operations to be successful, these two concepts are not combined in an explicit way. The author proposes a conceptual framework for process system synthesis and design by combining the value chain concept with the modified form of “the principle of optimality” to satisfy multiple objectives. There are two sequential problems: the first is to maximize the monetary value added, and the second is to have the Pareto optimum or compromised solutions. Both are discussed, and an illustrative application is described.

Towards a map of marketing information systems: an inductive study

The use of information systems (IS) in marketing is maturing, as previous piecemeal systems are replaced by CRM suites, which provide a unified view of the customer. However, research and practice in this domain suffer from the lack of a commonly accepted map of the marketing process, let alone of the potential marketing IS applications which support it. This paper describes an inductively derived process map of marketing, which is used as a basis for a map of marketing information systems. Maps synthesised from previous research were refined through seven case studies of the deployment of IS in marketing, using the analytic induction approach. The marketing map includes a revised definition of the sales process, a scoping of the role of integrated marketing communications, and a redefinition of the relationship between marketing and the other elements of Porter's value chain. Several implications of the IS map which overlays it are discussed.