A business involving selling of used CD music to other students will have a value chain with both the upstream and downstream sections. In addition, it is important to note that the product is already a finished product and therefore, will not involve any activities aimed at processing and production.
The business considered in this case study uses the internet as the interface connecting the consumers to the product (used CDs) and the means of payment to the supplier. It is an e-commerce enterprise. The storage of the products before they are sold and their delivery to the consumers is conducted physically. Therefore, this implies that marketing and customer factors need to be managed effectively in order to ensure that the business is a success.
Raw materials à Inbound logistics à Warehouse (storage) à Process control systems àoutbound logistics (distribution) à marketing and sales à Customer service
The value chain shown above will be implemented on the website that will be used to buy and sell the used CD music online. The raw material is the used CD music that will be bought from suppliers; the suppliers will upload the bought music on the website. The website will have an automated sorting and storage system that will process the bought music and categorize it for sale. Distribution of the bought music will be done via a customer website. This is where all the sorted and categorized music will be sold to consumers. Marketing and sales will all be conducted online and after customers have purchased music from the website they will be offered after sales services.
Services that support the value chain include human resource management, infrastructure, technology upgrading and procurement.
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