The Value Chain Analysis of the GM Company - Management Paper Example

The GM Company is one global automotive company that is known for the manufacture or rather reassembling of the car as well the sales of the same. The company is known globally for the sales of cars and production of the same and therefore the size of the market it serves wide. In the recent past, however, the company has been seen to be performing poorly, and this has made some of its competitors to beat it in the global charts. Ideally, the company has been facing some challenges that make its sales and profiting dwindle. This has made the stakeholders in the company to devise ways and methods with which it can gain its position back. Using the value chain analysis could help the company meet its objective of profiting revival. The value chain analysis looks at some of the firms resources and aims at improving on them to ensure increased profiting for a better competitive advantage (Reese et al., 2016). This paper aims at having a value chain analysis of the GM Company to come up with initiatives that the firm would employ to ensure increased returns hence more competitive advantage.

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To begin with, the company has the potential to develop the competitive advantage against its competitors based on some of the activities it undertakes. For instance, the firm could think of using methods better than their competitors or still having their operations conducted in an entirely different way from what their employers do. This would help the firm to create unique benefits. In addition to the methods mentioned above, the company could as well think of devising lower ways with which they can operate, and this would help attract a huge clientele base and in return have more sales hence more profits (Zamora, 2016). With more profits, the company is sure of regaining its prior position.

Secondly, the value chain analysis can be split into two main parts, and they are the primary value and the secondary value activities. These are vital areas that need to be looked at by any company that aims at progressing. Some of the elements that fall under the primary value activities include the customer service, marketing sales, and the logistics. The company needs to review these areas and have an improvement in how things are operated in the elements mentioned above in the enterprise. By so doing, they shall have move an inch towards regaining its economic glory (Caplan et al., 2016). The areas or rather sectors that fall under the secondary value activities include the firms infrastructure, technology as well as the human resources. The company can update the technology it uses to the latest ones. In addition to that, it may either offer training to existing employees or still hire more qualified employees than the already existing ones to help improve the companys operation and eventually the profits will rise. Once the profits start growing, the company will raise its way back to the top and compete favorably with other firms in the automotive industry.

Summarily, the GM Company is one company that is known for the sale and manufacture of automotive. The company has of late been seen to be performing poorly regarding profiting. The value chain analysis can be done to the enterprise, just as seen above, to come up with initiatives that would help the business to regain its economic glory. Indeed, the value chain analysis is one method that a company can employ to help in the analysis of its operations.

Reference

Reese, J., Waage, M., Gerwin, K., & Koch, S. (2016). Value Chain Analysis.

Zamora, E. A. (2016). Value Chain Analysis: A Brief Review. Asian Journal of Innovation & Policy, 5(2).

Caplan, D., Dutta, S. K., & Lawson, R. A. (2016). Corporate Social Responsibility Initiatives Across the Value Chain. Journal of Corporate Accounting & Finance, 27(4), 57-66.