Value Chain Model and its Application in Sainsbury

Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Value Chain Model- ....................................................................................................................3
Sainsbury-....................................................................................................................................4
inner environment- ......................................................................................................................5
Reflection on the value chain model-..........................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Value Chain Model is set of the various activities which company operating in the
peculiar industry execute in order for delivering precious products for marketplace. It is
developed by the Michael Porter in 1985.
Sainsbury is leading supermarket unit in whole UK. The company is founded by J.
Sainsbury in 1996. The above report includes the description of the Value Chain Model. Further
the report include the company and application of the Value Chain model. The inner
environment of company is being prescribed. Report ends with the reflection of the Value Chain
Model on the Sainsbury.
MAIN BODY
Value Chain Model-
Value Chain model is the procedure where a company find its support and primary
activities who adds values to their last products and further than examine this action for reducing
cost or raising distinction. It represents inner activities in which organization engaged for
transforming the inputs into outputs.
Value chain model is the strategy instrument which is being utilized for analysing inner
company's activities. The main aim is for recognizing, that activities which are least precious i.e.,
differentiation advantages or source of the price for company and that can be improved for
rendering competitive advantages (Ouzrout and et.al., 2018). With the help of inner activities,
investigation bring out organization's competitive disadvantage or advantages. Organization
which compete with the differentiation advantage will be trying to execute its activities which
can be finer than rivals. If company competes with the price advantages, they will try to execute
inner activities at the lower costs than market price or for rendering superior products by which
company can earn profits.
The Value chain model is pioneer by Michael Porter in the 1985. It represents inner
activities in which organization is engaged for producing products and services. It is made up of
primary activities which add worth to the last product instantly and assist activities. It contains
the different activities that are primary activities and secondary activities (Fjeldstad and Snow,
2018). These primary activities consider the operations, inbound logistics, marketing and sales
outbound logistics. These activities are directly involved in the selling and producing product to