Value Chain Analysis

Introduction

The purpose of this essay is to evaluate the reasons for value chain analysis and the different ways Verizon Communications Incorporated can gain a competitive advantage over their competition. “Based in New York and incorporated in Delaware, the company was formed on June 30, 2000 and was developed from a merger between Bell Atlantic Corporation and GTE Corporation” (Verizon, 2012).

Description of Theories/Core Concepts

The value chain analysis is utilized by several companies to evaluate the competition, determine what type of services and products the customers need, and to determine ways to make the company grow and remain successful. “Verizon is a global leader in delivering innovation in communications, information and entertainment” (Verizon, 2012). The company provides services for the customers in the areas of wireless, residential, and business. Porter’s Generic Value Chain is the model used for the analysis.

Analysis/Explanation/Discuss

“Leading the world in delivering innovation in communications, Verizon operates the fastest 4G wireless network in America. The company also services customers in more than 150 countries to include all of the Fortune 500 companies” (Verizon, 2012).

Using the Porter model, Verizon Communications Inc. primary and support activities includes: (Inbound) the purchasing and storing of materials in warehouses, (operations) the assembling and manufacturing of the products, (Outbound) gathering orders and packaging them for distribution, and (Marketing & Sales) ensuring that the products are on the shelves in stores for customer purchasing. The final activity in the model is service. Verizon covers more area and has more towers that any of its competitors which include Sprint and AT&T. The company also strives on maintaining excellent customer service skills.

Conclusion

Companies are now able to identify the strengths, weaknesses, opportunities and threats associated with their companies by following Porter’s Generic Value Chain. By using this method, companies are able to remain competitive while comparing themselves to other companies in efforts to gain an edge above the competition. Using this method Verizon Communications Inc. can identify ways to increase the company’s value and profits at the same time. Extending the Conversation

What are your thoughts on a company’s knowledge of the products and services they offer? Do you think the more a company knows about their products and services and how they affect the customers, they will be able to incorporate strengths along with meeting customer needs?

References

  • Verizon (2012).Corporate History. The History of Verizon Communications. Retrieved from http://www22.verizon.com/investor/corporatehistory.htm
  • Verizon (2012). Products and Services. Retrieved from http://about.verizon.com/index.php/about/our-company/products-services
  • Verizon (2012). Our Company. Retrieved from http://about.verizon.com/index.php/about/our-company