Evaluate Non Stop Yacht’s value chain to determine whether there is potential for low cost leadership, competitively valuable differentiating attributes, or a best-cost provider advantage in relation to competition. Value Chain of Non Stop Yacht Factors impacting value chain configuration are decisions related primary activities like to inbound and outbound logistics, operations, marketing and sales and service decisions. The secondary activities or support activities help the proper function and execution of primary activities.
The support activity decisions are related to the infrastructure, human resource management, technology development and procurement. All the activities included in primary and secondary activities of value chain incur cost. Firms generate revenues, through marketing and sales and service of the primary activities. Therefore each of the activities of value chain has potential of cost reduction and increasing profit margin. Management can utilize any of these activities for competitive advantage.
The value chain of a standard business operations are given below: Figure Porter’s Value Chain Company tries to create value for its customers through all these activities of value chain. In the process of value creation for the customer, company focuses on the each factor of the primary and support activities. All these activities can support any business unit
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The main focus is always the investors and customers. Customer feedbacks, requirement analysis, needs, market type, market share and overall business environment are considered during the value chain analysis process. Each factor has different response to different environmental factors. All the businesses are trying to satisfy their customers in this competing industry of yacht manufacturing. The process starts with the customer needs and requirement analysis and ends with its satisfaction and feedback for any business process.
A proper infrastructure and specialized services helps in creating value for the businesses. The business groups can utilize their energy, manpower and resources to the other area of the business. In the various factors of the value chain process, Non Stop Yacht can focus on inbound logistics, operations, outbound logistics, marketing and sales and service. Management at Non Stop Yacht can focus on the delivering products and services timely and properly. They need to maintain data and records of the factors like:
• Customer related performance such as frequency to which customer has been delighted, customer complaints, complaint areas, customer feedbacks and areas where customer was satisfied easily and with difficulty. • Times to respond to customer queries online This is one of most crucial aspects of this business. In most of the time repair and maintenance query comes with urgency. In such cases, shorter is the time to respond to customer query and provide desired material or service, higher will be chances of customer getting satisfied. • Times to respond offline queries like e-mail queries
• Priority services for customers • Number of new customers and number of repeat customer • Impact of seasonality with particular product, spare parts or service demand in the mega yacht industry. • Identifying high value consumers • Important suppliers with high credibility and quality of products. • Impact of technology on demand of new parts and products. This will help them in analyzing the factors that can create value. These aspects can be tangible as well as intangible. The quality can be measured with the quantity of queries and demand.
This will give them to develop an appropriate approach to focus on the aspects that can create value. These factors impact the operating and fixed cost of the business. Support Activities The factors we discussed above are the primary activities of the value chain. The secondary activities are procurement, human resource management, technology development and infrastructure. Non Stop Yacht Company needs to focus on the value creation through the various support activities. The technology and human resource are one of the most important factors for the same.
The margins of the primary activities are resulted at the end of the chain. All the primary factors have impact on them. Without the appropriate secondary activities organization will not be able to improve its primary activities. Therefore the desired results will not be achieved. There will not be any attractive margins. It will have direct impact on the shareholders profits which will not be good for the long run for the company. There are several others factors which are not directly related to the shareholders but have impact on them.
Rather if management focuses on the stakeholders which includes shareholders, customers, employees, suppliers, community they are working in and others this will have positive impact on shareholders as well. The performance indicators in the view of shareholders have changed from just asset to the cash flow of today. The values which a firm is creating are having long run impact. It is strengthening the position of firm within the industry and among shareholders as well. The organization has developed a strong virtual presence in the market place.
It has provided the platform to browse and compare various products online and instantly respond to the demand of the customer. It is able to provide many flexible and customized solutions to different requirements of mega yacht customers. It has a focused approach for its business strategy, shareholders’ benefits and other strategies related to partnerships and associations. The current business model will be more effective in the case it is able to attract more new customers and generate sales through them along with sustaining the old customers. This will require the following activities:
? Integrated and coordinated efforts of all the department of the company from procurement to the marketing and sales ? Provide accurate information on the state of the order and customer selling history. Alert customers regarding any kind of delay or problem as soon as the problem is recognized. The problem can be result of human error, calamities, political or any other) ? Minimize paper work, identify the non required or repetitive tasks, control waste, and make flowcharts of all the technical and non technical activities of the organization. ? Make the communication process clear and simple
Decision making should be quick and accurate ? Providing adequate training to the human resource to deal with variety of the customer requirements as indicated in the case or train specific people for specific needs. ? Identify and rectify all the areas of possible technical and human errors. The model on which NSY operates overcomes the draw backs of traditional trading. Drawbacks like inconvenience or unavailability of timely information, high dependence on agents and stock brokers should be taken care off. Mega Yacht industry has numbers of players in the market place.
The industry has value various companies, service providers, end consumers, network operators and the traditional yacht management companies in it. All these have their roles to play in order to promote e-marketing as an effective online trading medium. Consumers are the supreme power among all these companies. It depends on consumers if they are willing to receive the services and avail the facilities of virtual market place. Virtual platform overcomes two drawbacks of the traditional medium. It provides a platform from where message could be sent to the person intended to receive it.
Internet offers a cost effective medium for exchange of information. This information can be very crucial for the marketing, operations, human resource management, finance management, supply chain management, consumer service and various other business activities. Within a supply chain a company interacts with its suppliers, dealers and distributors, various franchise and other members of the supply chain to make the order available on time for the customer. Customer satisfaction is directly related to the pricing strategies, distribution strategies, quality, awareness, reputation, brand image, experience and benefits offered by the company.
A customer focused company will be able to create a profitable value chain as well as satisfy all its stakeholders. Company can also use a proactive approach. It can use its experience and skills of its employees to identify the duration within which a particular part requires repairing, maintenance or replacement. Based on this information, it can approach its existing customers with possible problem and solution. The new Yacht owners can be contacted and provided information on possible problems. This will help in creating a brand image and will also give first mover advantage.