INSEAD Case Study: Value Chain Analysis of Infinity Bank (INS453)

This case study analyzes the value chain of Infinity Bank, examining its primary and support activities to assess its operational efficiency and profitability. The analysis covers inbound logistics, operations, outbound logistics, marketing and sales, and service activities, highlighting their significance in the bank's overall performance. Furthermore, the study delves into the support activities, including firm infrastructure, human resource management, technology development, and procurement, emphasizing their crucial role in sustaining the bank's competitive advantage. The document references key academic sources like Barney (1995), Porter (1985, 2004), and Williamson (1975) to support the analysis, providing a comprehensive understanding of Infinity Bank's strategic positioning and operational effectiveness within the financial services industry. The analysis concludes by emphasizing the importance of adapting to modern banking practices to ensure long-term success.

Running head: INFINITY BANK- VALUE CHAIN
INFINITY BANK VALUE CHAIN
Name of the Student
Name of the University
Author Note

1INFINITY BANKING
Value Chain analysis of Infinity Bank
Figure 1: The Value Chain Analysis of a Bank
(Source: Barney 1995).
The Value chain analysis forms a critical analytical aspect which is focused on ensuring
that the bank is successfully able to carry out its internal operations and ensure that they are
successfully able to attain larger sales. Given below is the analysis of the Primary and Support
Activities of the Infinity Bank Profitability operations which is aimed at ensuring that the bank is
successful.
Primary Activities
Inbound Logistics
The inbound logistics activities which the bank engages in can be associated with the
storing, receiving as well as dissemination of the inputs of the products. This includes formation

2INFINITY BANKING
of architecture and storing consumer information for the purpose of the digital media company.
The profitability branch of the bank tends to outsource most of its activities.
Operations
The operational activities go a long way in assisting the firm to transform the raw
material to the finished products (Porter 2004). In case of the Infinity Bank, these operations
comprise of the banking operations, assembly and related product selling to the different
consumers.
Outbound Logistics
The outbound logistics comprise of the activities whereby the products are sold to the
final buyers. In case of the Infinity bank, the outbound logistics comprises of the choice of the
distribution, advertising, target market decision and selling of the products to the consumers.
Marketing and sales
The marketing and sales also forms a crucial part of the firm with respect to which the
bank will be required to appeal to the different people in order to ensure that they are
successfully able to meet with the bank targets and indulge in higher sales (Williamson 1975).
The management of the sales force, channel selection and other promotional aspects for the
Infinity bank is included in this aspect.
Services
The services which are offered by the firm can comprise of account management, training
of the staff, post sales management, and other help to the consumers.
Support Activities

3INFINITY BANKING
The support activities can be described as the secondary activities as undertaken by the
organization (Williamson 1975). The support activities of Infinity Bank are as follows:
Firm Infrastructure
The firm infrastructure support activities comprises of the planning, financing and
accounting, general management and other legal services. This helps in keeping the banking
operations on the run.
Human resource management
The human resource management activities can be stated to be the key to success and
comprises of the different employees who are working for the overall welfare of the firm.
Technology Development
The Banking operations at Infinity Banking are largely supported by the technology and
at Infinity, the technology is used for component design, process engineering, technology
selection and related aspects (Porter 1985).
Procurement Activities
The procurement activities at the bank branch comprise of activities like taking in inputs
from thee experts, management of the offices, management of machinery and other buildings.
Hence, from the given analysis, it can largely be stated that, the organization has been
perfuming considerably well, and in case the firm wants to ensure long term success in the long
run, then it would be required to ensure that it engages in activities which adept to the nature of
modern banking.

4INFINITY BANKING

5INFINITY BANKING
References
Barney, J. B., 1995. "Looking Inside for Competitive Advantage". Academy of Management
Executive, Vol. 9, Issue 4, pp. 49-61
Infinity Bank (A): Retail Branches and Customer Profitability, Harvard Business Review
Case Study. Published by HBR Publications.
Porter M.E., 1985. "The Value Chain & Competitive Advantage - Understanding Business
Processes".
Porter M.E., 2004. "Competitive Advantage: Creating and Sustaining Superior Performance"
Williamson, O.E., 1975. "Markets and Hierarchies"(New York: Free Press, 1975)