Value Chain Analysis of Michelin Group Essay Example | Topics and Well Written Essays - 750 words

order Chain Analysis of Michelin Group - Essay prototypeAs per Value Chain Analysis there are specific activities that cumulatively determine the patch of the company. These are the primary and secondary activities. Primary activities include inbound logistics, Operations, Outbound logistics, Marketing and sales and Service. The keep activities are Procurement, Human Resource Management, Technology Development and Firm Infrastructure. (Roberts, 134-35) The Value Chain Analysis of Michelin would be based on these criteria. The position of Michelin in the tire industry is very well placed. The main panorama of the success story of Michelin is that they produce quality materials at an affordable price and is wonderfully backed by very efficient team of after sales service. In addition to that Michelin is helped in an extremely supportive manner from the field of advertisements. The Michelin Man can be enumerated as a icon in not only the tire industry but the essence has reached b eyond that. However, it can be mentioned that the inability to beleaguer the heavy automobile industry in a full extent remains a greater weakness of the company. In this context it should be mentioned that the Annual Report 2006 promises to better this particular sector. In todays cosmea food market of tire business Michelin holds a very prominent presence. With the current market being a $100 billion industry the position of Michelin is noteworthy. These two leading figures were followed by Goodyear with 17.2% of the market share. (King, 122) The rest of the market segments were divided among other average sized manufacturers with a cumulative amount 28.8% of the market share. Further more, it was report that an additional 17% of tire sales was instrumented by local producers. (Lock, 245-46) Thus being a grand player if the world tire industry the effective Value Chain Analysis of Michelin becomes more important. The Value Chain Analysis can be enumerated as below Inbound logi stics of Michelin shows that the raw materials and storage and intervention charges of materials increased by about 12% from 2005 to 2006. On the other hand it was found that the Operations relating to the output of products was almost at par with the last few years (2002-2006) with an increase of 6%. (Annual report 2002, 201)The comparable cannot be said for the operations outbound segment and there was an increase of 5% on the military rank of production channeling. However the Marketing and sales indicated that the company showed an additional usage of 9.6% for the means of promotion and advertisements. The service sector under the determination of Value Chain Analysis showed that the total military rating was raised by about 3% reflecting the developing market structure in favor of the company. (Kar, 201-205) The support activities when taken into regard also show a similar amount of development in terms of net valuation for the company. The procurement factor reflected the variables that enabled Michelin to get the best possible materials for the lowest price and in this context it ca be summarized as a net gain of 15% in relation to 2005.