Report on Value Chain Analysis of Van Heusen Fashion: Business Study

This report presents a comprehensive value chain analysis of Van Heusen fashion, examining its operations through Porter's value chain model. The analysis covers both primary activities, such as inbound logistics (material handling, storing, and digital infrastructure), operations (customer data usage), outbound logistics (distribution to outlets and online), and marketing and sales (online and offline promotion), and support activities, including firm infrastructure (finance, planning, quality management), human resources management (training, sales etiquette), technology development (CRM software), and procurement activities (material, machinery, software). The report emphasizes the importance of long-term growth and sustainability over short-term profitability, highlighting that Van Heusen should not capture its market share on the cost of profitability.

Value chain analysis of Van Heusen fashion
Research in Business
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Topic: Porter Value Chain Analysis Van Heusen
VALUE CHAIN AND VALUE SYSTEM
The value chain of Van Heusen fashion basically includes the upstream suppliers or downstream
distribution people and channels. The report discusses about the Van Heusen and its every single
activities which are part of value chain analysis (Vliet, 2010). Value chain is a process of
observing each input activities which enables organization to get better output result with
improving quality of the existing processes.
Value chain activities – primary activities & support activities
Based on the theory, the value chain includes the list of primary and secondary activities which
are to be performed at the Van Heusen fashion outlet (Kargari & Mostafa, 2017). The primary
activities are largely related with inputs material of the company (Abdelhadi, 2016).
Primary Activities as per Porter’s Value Chain model
The image has explained the several aspects of value chain of Van Heusen, The primary
activities include inbound logistics and outbound used by Van Heusen fasion.com, operations
conducted at the warehouse, marketing and services (Kumar & V, 2016).
Inbound Logistics
The inbound activities at Van Heusen color fashion includes the several activities related to the
receiving, storing and distributing of the material of clothing. The inbound logistics even
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includes the material handling, storing of related physical products, waving, dying of material
and digital infrastructure to collect and accumulate client information. However, Van Heusen is
outsourcing most of its inbound logistics activities.
Operations
The chain of activities which help an organization to transform unprocessed material into
finished products. In case of Van Heusen, we would use customer data to send promotional mails
and messages to customers.
Outbound logistics
Outbound activities include the dissemination of fashion apparels from warehouse to Van
Heusen outlets and showrooms. The outbound logistics includes the processing, scheduling and
distributing of finished goods to suppliers and deliver it to end customers via offline or online.
Marketing and sales
The Van Heusen fashion promotes its products online and offline via billboards. Van Heusen
fashion is a luxurious brand which mainly promotes its fashion thru fashion week magazines,
blog and other digital media tools. The Van Heusen has its exclusive outlets in each city to
promote its fashion sense with related offers, however Van Heusen aims to cater the fashion
sense of high end family members and hence the prices will be high.
Services
It is essential for Van Heusen to serve the customer post delivery of the product. Whether it’s
online or offline, Van Heusen needs to listen to their customers’ complaints or queries. In case of
material, color or size change, Van Heusen fashion has to consult their clients for their concerns.
It even includes the installation of software services along with training the staff.
Support Activities as per Porter’s Value Chain model
Support Activities of Van Heusen fashion are the series of activities which helps the primary
activities of the firm. The supports activities related to Van Heusen have been explained as
below (ZUCCHI, 2018).
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Firm infrastructure
The finance and planning activities of Van Heusen fashion are managed at corporate level. And
quality management and legal issues are managed at business unite level. Van Heusen has to
maintain its quality of material and fashion in order to retain existing customers. Moreover, the
company has started selling its product online. However, it is impotent to notice the price
difference between online and offline sites and material.
Human resources management
In the competitive environment each company want to becomes a learning organization. The
human resource activities include the consulting and training of people which are recruited to
become the part of Van Heusen fashion. Moreover it is essential to check the etiquettes and basic
sales manner of an individual while dealing with end user.
Technology development
Technological development includes the product design and process design with cultivating
technological development, technology and digital media usage has become competitive
advantage for a company. Van Heusen is extending its customer service activities with the help
of CRM software.
Procurement activities at Van Heusen color fashion
Van Heusen fashion procure several kinds of material, machinery, office stationary, and fashion -
drawing related technology as a part of procurement activities, procurement even includes the
purchase of software which can be used for vender management, database evaluation,
performance evaluation, information system etc.
Based on the research, it was observed that VAN HEUSEN should not capture its market share
on cost of profitability. Value chain analysis is a process to boost sales and delivering value to
the customer by minimizing the existing cost. Company share prices just depict the profitability
for short span, it is important to aim for long term growth and sustainability.
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References
Abdelhadi, S. E. (2016). The Impact of Value Chain Analysis on the Global. Global Journal of
Management and Business Research: A Administration and Management , 16 (9), 13-23.
Kargari, M., & M. A. (2017). Development of a multi-tiered business model for value chain
analysis for mobile. Journal of health management & informatics , 4 (2).
Kumar, D., & V, R. P. (2016). VALUE CHAIN: A CONCEPTUAL FRAMEWORK.
International management of engineering and management , 7 (1), 74-77.
Vliet, V. v. (2010). Porter’s Value Chain Analysis. Retrieved April 21, 2019, from
www.toolshero.com: https://www.toolshero.com/management/value-chain-analysis-porter/
ZUCCHI, K. (2018, February 13). Value chain analysis: The basics. Retrieved April 21, 2019,
from www.investopedia.com/: https://www.investopedia.com/articles/investing/111014/basics-
value-chain-analysis.asp
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