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VALUE CHAIN ANALYSISOF TOYOTA Indus Motors Co.
The value chain is a systematic approach to examining the development of competitiveadvantage. It was created by M. E. Porter in his book, Competitive Advantage (1980).The chain consists of a series of activities that create and build value. They culminate inthe total value delivered by an organization. The 'margin' depicted in the diagram is thesame as added value. The organization is split into 'primary activities' and 'supportactivities.'
Primary Activities
Inbound Logistics:Here goods are received from a company's suppliers. They are stored until they areneeded on the production/assembly line. Goods are moved around the organization.Toyota motors purchase their raw material from all around the world. In order tomaximize their availability of raw material Toyota motors maintain good relationshipwith their suppliers. Toyota use JIT (Just In Time) approach for handling of raw material.

Operations:This is where goods are manufactured or assembled. Individual operations could includeorganizing the parts to make new cars & the final tune for a new car's engine. Toyotamotors are known for their reliability which comes from efficient operations.Outbound Logistics:The goods are now finished, and they need to be sent along the supply chain towholesalers, retailers or the final consumer. Toyota motors manage their own Showrooms in different countries. Toyota motors make their product easily assessable.Marketing and Sales:In true customer orientated fashion, at this stage the Toyota motors prepares the offeringto meet the needs of targeted customers. This area focuses strongly upon marketingcommunications and the promotions mix.Service:This includes all areas of service such as final checking, after-sales service, complaintshandling, training and so on. Toyota value their customers.
Support Activities

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