Value Chain Analysis of Service Industry

Service Industry is an area and part of the economy that focuses on producing services rather than developing physical and tangible products and goods. Economists have categorized business activity into two main areas; products and services; tangible and intangible. Today, we’ll discuss the value chain analysis of Service Industry supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Top Services in the Service Industry

• Government services
• Consumer service
• Justice administration and implementation
• Medicine
• Computer software development
• Communication
• Engineering
• Banking
• Wholesale and retail
• Graphic Designing
• Housekeeping
• Maintenance
• Athletic training business

The Value chain analysis of Service Industry supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Service Industry value chain analysis company example as follows;

Value Chain Analysis of Service Industry

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Service Industry supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Service Industry

The primary activities are directly involved in the production of products and goods and adding value to the service company. Some of the five main primary activities in the value chain analysis of Service Industry supply chain analysis are as follows;

Inbound Logistics of Service Industry

I-Service Supply Network

The market of Service Industry is very big and large comprising experts and professional services in various fields. For instance, they comprise labor services, software services, consumer services, banking and financial services, retail and wholesale services, administration services, and others. Companies could easily find services and professional experts in various countries across the world.

II-Benefits & Incentives

Businesses and companies offer multiple benefits and incentives to their service providers to win their trust, confidence, and loyalty. The objective is to retail the talent and service providers as a part of their team to ensure their long-term growth. However, it lets them know that the company cares about their employees and service providers.

III-Relationship with Experts & Customers

Along with offering incentives, companies focus on building a long-term relationships with their service providers and customers. It allows them to ensure the smooth availability of services and retain the loyalty of customers and service-providing professional experts.

Outbound Logistics of Service Industry

Businesses and companies employ multiple channels and services to deliver the required service to the end customers. For instance, they use the internet and cloud platforms to distribute software and application services to end consumers. They give and use transportation services to take the tech professionals and experts to the required working facility.

Operations of the Service Industry

Businesses and companies in the Service Industry engage in multiple operations to deliver the desired and required service to their target customers. Some of them are as follows;

• Banks engage in multiple financial operations to perform various transactions
• Hotels and restaurants prepare food and lodging to serve their guests
• Software companies develop programs and software for clients
• Tourism needs to make sure of timely transport and boarding services to serve travelers
• Engineers keep their tools and equipment ready to serve the needs and requirements of customers

Marketing & Sales of Service Industry

Businesses and companies in the Service Industry run various types of marketing and advertisement campaigns for the promotion of their services. They employ various media channels and digital media platforms to approach their target customers. However, it allows them to increase their market network and sales.

Services of Service Industry

Service Industry offers a wide range of services to the end consumers. The objective of service-providing firms is to provide timely and quality service to the customers. It would help them to build a better and improved relationship with customers and promote brand loyalty among them.

Supporting Activities of Service Industry

Supporting activities are indirectly involved in the production of products and goods and adding value to the service company. Some of the main supporting activities in the value chain analysis of Service Industry supply chain analysis are as follows;

Infrastructure of Service Industry

Service Industry has established a very large infrastructure of universities, colleges, training institutes, service-providing firms, tools, and equipment builders, and standard operation protocols for every subject category. The large and well-developed infrastructure would help them to ensure the smooth availability of services without any delays and disruptions.

HRM of Service Industry

The service Industry has employed millions of people performing different roles in various areas of life. The human resource management department of countries and companies plays a key role in devising training courses and syllabi for customers, conducting training programs for people, and rightly promoting required skills and expertise among people.

Technological Development of the Service Industry

The service Industry invests a significant amount of capital resources in research and technological development. It allows them to find new methods of performing various tasks, developing algorithms for software and programs, and setting up protocols for performing various services.

Procurement of Service Industry

The service Industry is highly cautious about performing various services in the ethical and sustainable. They ensure the non-exploitation of workers, no child and forced labor, the right attitude, and a professional working environment.

Conclusion: Service Industry Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Service Industry; we have realized that Service Industry plays a key role in the growth and development of an economy. If you are learning about the Service Industry value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.