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ses and capabilities that an anization has developed Both can be exploited and developed into a sustainable petitive advantage Weaknesses Resources and capabilities that are lacking or deficient Prevent an anization from developing a sustainable petitive advantage 169。 Prentice Hall, 2023 End Show 4 12 HOW TO DO AN INTERNAL ANALYSIS Value Chain Analysis Customers demand value from the goods and services they obtain Customer Value ? ? ? ? Product is unique and different Product is low priced Quick response to specific or distinctive customer needs Value Chain Systematic way of examining anization39。s functional activities ? How well these activities create customer value ? Organization39。s strengths and weaknesses in these areas 169。 Prentice Hall, 2023 End Show 4 13 Value Chain Analysis Primary and Support Activities in the Value Chain Figure 44 Support Activities { Procurement Technological Development Human Resource Management Firm Infrastructure Primary Activities { Inbound Logistics Operations Outbound Logistics Marketing and Sales Service 169。 Prentice Hall, 2023 End Show 4 14 Value Chain Analysis Assessing the PRIMARY Activities in the Value Chain ( from Table 41) Inbound Logistics ? ? ? Materials control system Inventory control system Raw material handling and warehousing Operations ? ? ? ? Equipment parison to petitors Plant layout Production control system Level of automation in production processes 169。 Prentice Hall, 2023 End Show 4 15 Value Chain Analysis Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 41) Outbound Logistics ? ? Timeliness and efficiency of finished products delivery Warehousing of finished products Marketing and Sales ? ? ? ? ? ? ? ? Marketing research Sales promotions and advertising Alternative distribution channels Competency and motivation of sales force Organization’s image of quality Organization’s reputation Brand loyalty of customers Domination of various market segments 169。 Prentice Hall, 2023 End Show 4 16 Value Chain Analysis Assessing the PRIMARY Activities in the Value Chain