Question

What is the Value-Chain analysis for eHarmony?

eHarmony (the online dating website)

VALUE CHAIN ANALYSIS (example printing company) Firm infrastructure: General management, Planning Management, Legal, Finance, Accounting Human Resource Management: Recruitment, Retention, Training, R&D Support Processes Technology Development: Continuous improvement in printing & finishing assets Procurement of Resources: Purchasing paper, printing consumables and other finishing consumables Competitive Advantage Inbound Logistics Outbound Logistics Marketing and Sales Service Operations Primary Business Processes • Reception • Storage • Inventory control • Transportation planning • Customer support • Printing Finishing • Warehousing • Order fulfilment • Transportation • Distribution • Partnership • Advertising • Promotion

Answer 1

Answer:

Porter's value chain model is very popular within the business world. However, eHarmony quite Traditional Internet Dating must not take it as a rigid, standalone framework by assigning equal importance to all or any activities. The effective Value Chain Analysis requires eHarmony quite Traditional Internet Dating to understand that each one activity or function doesn't require an equivalent scrutiny level. Hence, the primary step of adapting the Porter Value Chain framework is to spot the importance of activities consistent with their role within the product/service delivery process.

Here is that the list of primary value chain activities as proposed by Porter:

2.1 Primary Activities

The primary value chain activities of eHarmony quite Traditional Internet Dating are directly involved in producing and selling the merchandise to targeted customers. Analysis of primary value chain activities can improve the performance of eHarmony quite Traditional Internet Dating as explained below.

2.1.1 Inbound Logistics

It is important to develop strong relationships with suppliers as their support is important to receive, store and distribute the merchandise. Without analyzing the inbound logistics, eHarmony quite Traditional Internet Dating can face various challenges in development phases. Analysis of inbound logistics requires a corporation to specialize in every aspect of transformation from staple to finished product. Some samples of inbound logistics are retrieving staples, storing the inputs and internally distributing the staple and components to start out production.

2.1.2 Operations

The importance of analyzing operational activities raises when staple arrives, and eHarmony quite Traditional Internet Dating is prepared to process the staple into the top product and launch it within the market. Some samples of operational activities are machining, packing, assembling and testing. Equipment repair and maintenance also falls into this category.

It includes both- manufacturing and repair operations. Analysis of operational activities is vital for improving productivity, maximizing efficiency and ensuring the competitive success of eHarmony quite Traditional Internet Dating. The increased productivity can help eHarmony quite Traditional Internet Dating to realize the consistent economic process, increase profitability and set a strong basis for competitive advantage.

2.1.3 Outbound Logistics

Outbound logistics include the activities that deliver the merchandise to the customer by passing through different intermediaries. Some outbound logistics activities are material handling, warehousing, scheduling, order processing, transporting and delivering to the destination. eHarmony is quite a Traditional Internet Dating can analyze and optimize the outbound logistics to explore competitive advantage sources and achieve its business growth objectives.

Because, when outbound activities are timely managed with optimal costs and merchandise delivery processes put a minimum negative effect on the standard, it maximizes customer satisfaction and increases growth opportunities for the firm. eHarmony is quite a Traditional Internet Dating should pay specific importance to its outbound value chain activities when its offered products are perishable and need quick delivery to the top customer.

2.1.4 Marketing and Sales

At this stage, eHarmony quite Traditional Internet Dating will highlight the advantages and differentiation points of offered products to influence the purchasers that its offering is best than competitors. Only producing a high-quality product at affordable costs and distinctive features cannot create value until eHarmony quite Traditional Internet Dating invests within the marketing and sales activities. The sales agents and marketers play a crucial role here.

Some samples of eHarmony quite Traditional Internet Dating's marketing and sales activities are- sales department, advertising, promotional activities, pricing, channel selection, quoting and building relations with channel members. the corporate can use the marketing funnel approach to structure its marketing and sales activities. The marketing strategies can either be push or pull in nature, counting on the eHarmony quite Traditional Internet Dating’s business objectives, brand image, competitive dynamics and current standing within the market.

Effective and wisely integrated marketing activities can develop the brand equity of eHarmony quite Traditional Internet Dating and help it stand out from the competition. However, eHarmony quite Traditional Internet Dating must avoid making false commitments about product features that can't be fulfilled by the assembly department. It indicates the necessity to make sure coordination between different value chain activities.

2.1.5 Services

The pre-sale and post-sale services offered by eHarmony quite Traditional Internet Dating will play a crucial role in developing customer loyalty. fashionable customers consider post-sale services as important as marketing and promotional activities. the facility of negative e-WOM thanks to poor support services can't be undermined within the current technologically advanced era. the corporate must analyze its support activities to avoid damaging brand reputation, and instead use it as a tool to spread positive word of mouth thanks to quick, timely and efficient support services.

2.2 Secondary Activities

The support activities play a crucial role in coordinating and facilitating the first value chain activities. eHarmony quite Traditional Internet Dating also can enjoy the analysis of its support activities as explained below.

2.2.1 Firm infrastructure

The firm infrastructure denotes a variety of activities, such as- quality management, legal matters handling, accounting, financing, planning, and strategic management. Effective infrastructure management can allow eHarmony quite Traditional Internet Dating to optimize the worth of the entire value chain. eHarmony is quite a Traditional Internet Dating that can control the infrastructure activities (or commonly called overhead costs) to strengthen the competitive positioning within the market.

2.2.2 Human resource management

eHarmony is quite a Traditional Internet Dating that can analyze human resource management by evaluating different HR aspects, including- recruiting, selecting, training, rewarding, performance management and other personnel management activities. The effective HR management can allow eHarmony quite Traditional Internet Dating to scale back competitive pressure supported the motivation, commitment, and skills of its workforce. the corporate also can achieve its cost minimization objectives by analyzing hiring and training costs with their relative return. The heavy dependence of eHarmony quite Traditional Internet Dating on employees' talent will increase the importance of this value chain support activity.

2.2.3 Technology development

In a modern, technologically advanced era, most value chain activities depend upon technological support. The technological integration in production, distribution, marketing, and human resource activities requires eHarmony quite Traditional Internet Dating to understand the importance of technology development. It is often divided into product and process technology development activities. Some examples are- automation software, technology-supported customer service, product design research and data analytics. The research and development department of eHarmony quite Traditional Internet Dating is assessed during this category.

2.2.4 Procurement

The procurement in value chain denotes the processes involved in purchasing the inputs which will range from equipment, machinery, staple, supplies, staple and other items necessary for producing the finished product. thanks to its linkage with multiple value chain activities, eHarmony quite Traditional Internet Dating should carefully consider its procurement activities to optimize the inbound, operational and outbound value chain.

As mentioned above, the appliance of the Porter Value Chain model depends on understanding the importance of all activities. After understanding the relative importance of identified value chain activities, eHarmony quite Traditional Internet Dating should highlight areas where value is often added, cost efficiency is often achieved, a differentiation basis is often set, or processes are often optimized.