Value Chain Analysis on Heineken Beer Company

Introduction

This report discusses the value chain analysis of Heineken Beer Plc. The value chain is a valuable tool to dynamically evaluate whether and how the competitive advantage is achieved, maintained and defended. This tool can be used therefore to consider in an effective and formalized the opportunities offered by information technology. The value chain can, in fact, to consider the enterprise as a system of activities that generate value, meaning the price the consumer is willing to pay for the product which meets their needs.

Information technology can greatly influence these activities, sometimes simply by improving efficiency, modifying other deeply (Young pp.375).

To refer to the value chain to keep in mind that Heineken has a number of constituent parts of the process of creating products and services that are not isolated. The parts that constitute a chain of events are interdependent, so that changing one other impacts. In short, all processes in a value chain are linked in a systemic way.

The Michael Porter, who popularized the concept of value chain, defined as a form of analysis of business whereby Heineken is broken down into its constituent parts, seeking to identify sources of competitive advantage in those activities that generate value. A deep immersion in each of the activities of Heineken referred to by Porter, identifies how the company status is and what are the social and environmental causes. This is the foundation for progress towards a management that considers not only the financial and traditional production patterns, but also takes into account the costs and long-term gains. It is also betting social value that includes all those affected by the activity of the company.

Primary Value Chain Activities:

Inbound logistics

Heineken is distributed globally, stored in warehouses strategically placed throughout to minimize shipping costs to stores. In this study, customer perceived value refers to customers' overall judgment of quality and sacrifice to shop in retail stores. The scale consists perceived quality which is developed and sacrifice which is developed. Customer value can reduce uncertainty and help in building trust and result in willing to commit long-term relationship with a firm state that firms should modify customer satisfaction measurement to focus on examining factors, such as marketing strategy and customer lifetime value which can really improve customer equity (customer loyalty). Value is the foundation stone to the success of buyer-seller relationships(Young pp.375). Information technologies have already shown their effectiveness in accelerating the distribution of materials throughout the distribution cycle.

A distribution company, for example, has installed a series of very sophisticated terminals at the supplier to allow the issue of orders in real time according to the system just in time. In this way you reduce the volumes of the stock of incoming materials and the problems caused by lack of supplies. The need to maintain a level of security stocks and their costs are passed on to suppliers. The buyer's computer is able to choose the same product at the lowest price, eroding margins of suppliers. The distribution ...