To begin with, it is necessary to provide some background about value chain that was coined by Micheal Porter with his book in 1985. In this bestselling book, the idea of value chain was explain how the firm create the competitive advantage and value after some specific activities which deemed as value-adding porocess. It was splited into two parts in Porter’s Value chain mode and they are “primary activities” and “support activities”. “primary activities” include following steps : Inbound logistics ( production/operation ( outbound logistics ( sale and marketing ( maintenance Inbound logistics: The firm receive the goods from the supplier and stored them until firm need on production or assembly line. Production: Where goods are manufactured and assembled. Outbound: Goods are finished and ready to send to wholeselers, retail sellers or customers. Sale and marketing: The firm try to meet the targeted customers needs with sort of marketing communication,promotion mix.
Maintenance :Different kinds of service such like: deliver, install ,after sell service and so on. After the “Primary activities” are “support activities” that also the value-adding activities to the origination. The “Support activities” are known as : ( Administrative infrastructure management ( Human resources management ( R&D ( Procurement Administrative infrastructure management: The activities are driven by the corporate strategy Human resource management: Human resource is expensive and vital resource and any firm need take care and respect their staff.
R&D (Research and development): The innovation in any corporate is necessary thing that the firms need reduce the cost of sell and create competitive advantage. Procurement:The aim is to secure the lowest possible price for purchases of the highest possible quality. Whatever, the ultimate aim of value chain is that create maximum profit at minimal cost. The Nokia is one of the most famous and popular company in mobile communications. Indeed, it pursue sustainability of the broader mobility industry and never stop innovating on products and service based on human nature .
For long time Nokia won much market share and lead mobility communication world and be ahead of many competitor, it was not a coincident but it deserves the honour for their effort on hard working and never satisfied to generate the best products and service. To face the changes and challenger that many company want to share the market , Nokia not only focus on value chain that improve quality on production and service but also promote the suppler or distribute chain which may lead to extended value.
