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Value Analysis: Value Chain Analysis Of Hyundai

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VALUE CHAIN ANALYSIS

Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in …show more content…

Inbound Logistics
Here Hyundai received goods from their suppliers. They will store the goods until they are needed on the production line, and the goods will moved around the organizations. The raw material of Hyundai motors is purchase from all around the world. Company’s goal is to maximize their availability of raw material, and maintain good relationship with their suppliers. Hyundai use JIT (Just In Time) approach for handling of raw material.
Operations
Operation is where goods are manufactured or assembled. Individual operations could include organizing the parts to make new cars & the final tune for a new car's engine. Hyundai motors are known for their reliability which comes from efficient operations. Currently, the company has increased its production capacity. Also, they have separate departments for activities like painting, welding etc.
Outbound Logistics
It means that the products are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer. Hyundai sells vehicles in 193 countries (ehow.com, 2013), and they manage their own Showrooms in different countries. The company makes their product easily

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