Value Chain Analysis is a significant tool that helps its users determine how a company can produce important values for its clients or customers and analyses how the company gains advantages over the other companies in the market.
Verizon Value chain Analysis model suggests two types of activities, and companies must know these activities to produce good value for customers. In addition, this model offers that companies should focus on both categories to achieve a competitive advantage.
This article is a significant source of information related to Verizon Value chain Analysis, like its primary and secondary activities that help you solve your all queries. So, for further details, read this complete article.
Background of Verizon
Verizon communication is an American-based multinational telecommunication company formed by the Bell Atlantic Corp. and GTE Corp. on June 30, 2000. Verizon provides telecommunication services to customers in many countries but majorly in the US.
You can see its popularity as it has become one of the largest local telephone companies in the US, which operates 60 million telephone lines in all 40 states. Moreover, this company has invested a significant amount in big company names like Yahoo and AOL.
Primary activities
Primary activities play a significant role in Verizon Value chain analysis as these are majorly designed to increase values and profile to the company. There are 5 main categories of primary activities.
- Inbound Logistics
- Operations
- Outbound Logistic
- Marketing and Sales
- Services
These five primary activities are briefly discussed below, so let us discuss these categories one by one without wasting time to understand the Verizon value chain analysis.
Inbound Logistics
Inbound Logistics contains all processes, including how the company obtains raw material or sources its services. But for Verizon, Inbound Logistics is made up of its stores through which it gives many benefits to its customers.
Furthermore, these stores are the primary source of services for its customers as they allow Verizon to connect with the customers. Verizon sources its services for its wireline segment through a chain of suppliers. This company also provide services to other corporate clients.
It obtains raw material from many specialized suppliers, and IT allows the company to serve its customers better while providing better value to the customers.
Operations
Any company’s operation includes a process involved in converting its goods & products, and services in raw form to finished goods. As we are discussing Verizon, so for Verizon operation, include a lot of processes.
First of all, it helps maintain equipment that is necessary to provide customers with uninterrupted services. And it also contains building out its operations to the new locations. For a company, the size of Verizon is crucial to maintain all necessary quality standards.
Quality inspection is also a big critical part of its operations. But for Verizon wireless’s owned stores, a proper and efficient system related to inventory management is also crucial. In addition, through its operations, it has obtained a competitive advantage over the other companies.
Outbound logistic
Any company’s outbound logistics means including all processes or operations to deliver the finished goods & services to the customers. Similarly, Verizon also contains many outbound logistics, and these include many distribution channels through which the company delivers its goods and products.
It helps to company to create value for its customers. The company can also coordinate shipments to several indirect retail stores. Because of them, the company also maintains more channels to reach its customers and has several shipments channels for online retail.
It includes many channels that are used to distribute specialized products & services to corporate clients.
Marketing and Sales
Marketing and Sales consist of all promotional and other marketing activities that help companies to promote their products. In comparison, Verizon’s Marketing and Sales are the most significant advantages as it undertakes many marketing and sale activities to promote its goods & products.
Verizon invests a large proportion of its budget in marketing and sale activities. It has many support suppliers that help in the addition of its promotion through a special sales force. Moreover, this company had successful Marketing and Sales campaign in past which helps to increase its sales further.
Services
A company’s services consist of all sale services that it provides to its customers. Due to its nature, Verizon majority depends on the benefits to generate significant revenue as it has several stores across various countries. It employs experienced sales representatives who provide full support to its customers.
This company has several call centers and many online representatives, which provide its services to the customers 24/7. In the end, services are the most significant contribution to a company’s competitive advantage.
Verizon support Activities
A company’s support Activities do not relate to its products and services. There are a few Verizon support Activities that are mentioned below.
- infrastructure
- Human source management
- Technology development
- Procurement
Infrastructure
Verizon’s immutable infrastructure is the management and support activities that help to operate an entity. Without a robust infrastructure, a company of larges size like Verizon cannot maintain its position.
Through it, this company has been able to maintain its activities. It operates thousands of retail stores and has many offices in a lot of countries and cities. Coordinating the operations of these companies under a central roof is one of the biggest company’s achievements.
Human source management
Human source management is basically how to manage its workforce. Verizon contains more than 135,000 employees in various locations. Its recruitment process is robust, which allows t to gain the best services.
Motivated employees help the company to achieve its primary activities efficiently.
Technology development
Verizon’s technology development focuses on how this company uses technology to facilitate its activities and provides services to customers. This is crucial to Verizon as this industry is evolving at a constant pace.
It has moved from wired services to wireless services, showing that several incorporated technologies into its activities. It ultimately helps it to attract more users and enhance its products and services.
Procurement
It is the activity that is involved in the purchasing of products or the sourcing of services. Verizon has a significant procurement process through its vast supplier relationships. This company must acquire wireless technology with other equipment and parts to maintain services.
Verizon’s procurement is a process that helps to allow it to obtain all products and services at affordable prices. This company has acquired a supplier warranty which enables it to provide the best quality products & services.
Final words
Verizon is the 2nd most extensive wireless communication network in the US as it provides several products and various services to its customers and is very corporative to its clients. Its primary and support activities allow it to gain a competitive advantage over the other companies.
Moreover, it also creates value for customers with the help of these activities to maintain at the top position. A much better analysis that a company achieves is given above through value chain analysis.
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