Creating a value chain
What is the competitive side of our business?
What stands for Value Proposition in Holding Financial Group and sets us apart from our competitors is how the Group’s business generates the most value for customers and generates a large profit margin.
What is a value chain?
A value chain is a description that is used for all the business activities we need to create a product from start to finish. The design, production, distribution and support of our products and services are in the value chain and make Holder Financial Group superior to other competitors in the market. The competitive advantage created will improve our efficiency and increase our profit margins. By analyzing the value chain of the group and subset of products and services, they are always on the path of quality improvement, and this helps us to enter new markets and commercial activities.
Value chain analysis
Value chain analysis is the method used by Holder Financial Group to analyze their activities to create new products and services. After analyzing the activities, the group can use the results to evaluate ways to improve their competitive advantage.
Competitive Advantage
Competitive advantage is what sets Heldir Financial Group apart from competitors. And to create an advantage, we need a clear idea of our target market, the benefits that our products and services provide to the target market, and a thorough understanding of our competitors and their offerings. Holder Financial Group creates a competitive advantage in creating the value chain of its services and products in the following areas.
Cost Leadership
The goal of a cost leadership strategy is to become the lowest cost provider in the industry or market. Due to the cost reduction strategy, we have high operational efficiency and use low-cost resources to reduce the overall price of our product or service.
Distinction
Using a differentiation strategy, we create a competitive advantage by offering unique or highly specialized products and services. For this reason, Holder Financial Group devotes its time and resources to innovation, research and development. With this successful strategy, the group gains price leadership on its products or services.
For focused efforts, we choose the group’s competitive advantage. Depending on what the group’s competitive strategy is, we choose the goal of our value chain analysis. So the group will try to reduce costs or differentiate to improve margins. By clarifying ideas and aligning them with the group’s goals, we determine how to secure our value chain to reduce the range of changes that may be needed to improve efficiency.
Porter value chain analysis
Based on the model introduced by Harvard Business School professor Michael Porter, who in his book “Competitive Advantage” introduced a simple value chain model, we divided the steps of value chain analysis and business into two main categories and support We share.
Steps of value chain analysis
Value chain analysis requires research and can be time consuming to develop. Listed below are all the steps needed to create a value chain analysis:
First, we determine the main activities and support of Holder Financial Group. Initial and support activities form the value chain. They include any action required to develop the group’s products or services, from raw materials to the final product. Then we analyze the value and cost of activities. The team in charge of creating the value chain analysis considers each activity for the group’s customers as a total value. We compare the activity with the competitive advantage we want to achieve (cost leadership or differentiation) and examine whether it supports this goal. After completing the value analysis, we look at the costs of the activities. Are the activities optimized enough? How much does it cost to use resources in a group? Asking similar questions helps identify which activities are cost-effective and which are not. In this section, we identify areas that can be improved. Once the value chain analysis is completed, the key stakeholders in Holdair Financial Group can see an overview of the group’s excellence and a vision of where operational progress can be seen. We start with small changes that make improvements and deliver high-impact results. Once identified and easy to act on, we will face the team and its subordinates with bigger challenges that may hinder productivity.
In general, value chain analysis gives businesses a clear idea of how they can adjust their actions and processes to have the most value in their target market and increase profit margins for the company, and we at Holder Financial Group We implemented the issue well in the subset of products and services. Here are the steps to do this.
Initial activities and support
Identifying initial and supportive activities is the first step in creating a value chain analysis. These are the key processes and systems that a business uses to develop a product or service.
Basic activities
There are five main activities and they include all the steps that lead to starting a business in the group.
Incoming logistics
This is how materials and resources are obtained from suppliers before the final product or service is produced.
the operation
Operations are how the materials and resources are produced and as a result the final product or service is provided.
Procurement outside the group
Once a product or service is completed, it must be distributed. Out-of-bounds procurement describes the delivery process to the group’s end customers.
Marketing and sales
In this way, our product or service is presented and sold to the designated target market.
support services
This is customer support for node businesses, which can include product support and training, warranty and guarantee.
Support activities
Support activities help the core activities to gain an advantage over competitors and include:
Group infrastructure
This requires all the management, financial and legal systems that Holder Financial Group has in place to make decisions about subsidiary businesses and effective resource management.
Human resources management
Human resource management includes all the processes and systems involved in managing employees and hiring new employees. This is especially important for affiliate companies that provide face-to-face services, and employees can have a great competitive advantage.
Technology Development
The development of new technologies in the money and financial markets (Fintech) contributes to the innovation of Holder Financial Group. And Fintech can be used at different stages of the value chain to gain more advantage over competitors by increasing efficiency or reducing production costs.
logistics
In this way, resources and materials are provided for a product and suppliers are found. The goal is to find quality resources that fit the business budget.
Conclusion
Utilizing the value chain method in the activities of Holder Financial Group, which creates the most value for our customers and businesses, helps us to eliminate inefficient activities, production speed, competitive advantage and profit margins of the group and its subsidiaries. Increase significantly.