Zara Case

Manager need to understand of delivering value to customer that which activities are vital in creating value to achieve competitive advantages. The organization will decide that which activities should be undertaken to create value and also use to model the value system, of an organization. The Michael Porter developed value chain consist of primary and support activities. Manufacturing a product or services and delivering those product and services is the main concern of the primary activities. Each group of these primary activities is linked to support activities in such a way that with the help of support activities the primary activities will flourish and will be affective. The following figure shows primary and support activities of the value chain of an organization which I will discuss in term of Zara a Spanish leading and the profitable retail of the Inditex group.

Firm infrastructure

Human Resource Management

Technology Development

Procurement

Inbound logistic operation outbound logistic Marketing & sale Services

The following are the Michael porter value chain activities.

• Inbound Logistic: These activities concerned with managing the supply of raw material, stock control and transport.

• Operation: Operation transforms this raw material into final product or services, converting input into finishing product.

• Outbound Logistic: Distributing the final product to customer i.e. warehousing and distributing is the main concern of this activity.

• Marketing & Sale: Sale s, administration, advertising & selling is the main focus of this activity in which business will provide service/product to the customer.

• Services: Maintain value of product i.e. repairing, installation and training are the main job of this part.

• Procurement: Procurement if the support activity of porters value chain. The process that occur in parts of organization for raw material and services to create valuable activities.

• Technology & Development: The technology development comprises R&D product design, process automation and other technology related development.

• Human Resource Management: Recruiting, managing, training and compensation of employee all these activities are the concern of HRM.

• Infrastructure: Infrastructure activities include finance, quality control management and information management