Scalability is a characteristic of a system, model or function that describes its capability to cope and perform
under an increased or expanding workload.
Porter’s 5 Forces
Porter’s 5 Forces
Threats of new entrants
Threats of substitution
o Switching costs
Bargaining Power of Buyer
o Switching costs
Bargaining Power of Supplier
o Switching costs
Competition in the industry
Value Chain Model
Porter’s Value Chain Model
Primary Activities – relate directly to the value created in a product or service
Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Services
Support Activities – make it possible for the primary activities to exist and remain coordinated
Organization, Human Resource Management, Technology, Procurement
Primary Activities
Inbound Logistics
o Raw materials handling, Delivery
Operations
o Manufacturing, Assembly
Outbound Logistics
o Order processing, Shipping
Marketing and Sales
o Product, Pricing, Promotion, Place
Service
o Customer service, Repair/Maintenance
Support Activities
Organization
o Includes all departments like management, finance, legal, etc., to keep the company operational
Human Resource Management
o Hiring, Promotion and Placement, Rewards, Employee Relations
Technology
o IT capabilities + Hardware & Software + Datacenter to help the business processes (i.e., Wal-
Mart, bar code to swipe at checkout aisle, the information is instantaneously sent to the data
warehouse, which can replenish the stock in real-time.
Procurement (Purchasing)
o Purchasing of raw materials, suppliers and other consumable items as well as assets for the final
product. (i.e., Starbucks: the angel travel to Asia, for the procurement of high grade raw
materials to bring coffee to its customers. Then establish strategic relationship and partnership
with a supplier through communication)
under an increased or expanding workload.
Porter’s 5 Forces
Porter’s 5 Forces
Threats of new entrants
Threats of substitution
o Switching costs
Bargaining Power of Buyer
o Switching costs
Bargaining Power of Supplier
o Switching costs
Competition in the industry
Value Chain Model
Porter’s Value Chain Model
Primary Activities – relate directly to the value created in a product or service
Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Services
Support Activities – make it possible for the primary activities to exist and remain coordinated
Organization, Human Resource Management, Technology, Procurement
Primary Activities
Inbound Logistics
o Raw materials handling, Delivery
Operations
o Manufacturing, Assembly
Outbound Logistics
o Order processing, Shipping
Marketing and Sales
o Product, Pricing, Promotion, Place
Service
o Customer service, Repair/Maintenance
Support Activities
Organization
o Includes all departments like management, finance, legal, etc., to keep the company operational
Human Resource Management
o Hiring, Promotion and Placement, Rewards, Employee Relations
Technology
o IT capabilities + Hardware & Software + Datacenter to help the business processes (i.e., Wal-
Mart, bar code to swipe at checkout aisle, the information is instantaneously sent to the data
warehouse, which can replenish the stock in real-time.
Procurement (Purchasing)
o Purchasing of raw materials, suppliers and other consumable items as well as assets for the final
product. (i.e., Starbucks: the angel travel to Asia, for the procurement of high grade raw
materials to bring coffee to its customers. Then establish strategic relationship and partnership
with a supplier through communication)
