1-What value does BIT create in the distribution Value Chain for books?
Analysing the Chain Value, we can see that it is divided in two different parts.
Chain Value
Support Activities
Primary Activities
Legend:
A ? Control Management
B ? Accounting/Financial Management
C ? Human Resources
D ? IT Infra-Structures
These are support activities, that don't have direct impact on the creation of competitive advantage for the company, but have it on efficiency. They create value indirectly, once that, at this level, companies can save money to invest in other development areas.
In Xerox case, A and D are the most visible on their structure. Control management is evident as they can assure the same unitary cost for 1 and 5000 bookrun lengths. Charging the same price to all consumers will be creating some advantages for the lower orders and creating a new market opportunity. Even though this can be a niche market, it will certainly bring new opportunities and satisfy consumer's needs. As for D, it's essential that a company like Xerox have a good IT Infrastructure. Moreover besides coordinating all the company on a virtual platform, they are the main stay of this new business. After digitalizing the books, they are put on available on the databases the company possesses. They will need a very good IT strategy to coordinate all the information, software and accesses in order to assure this model works and the business is profitable. After this well formed employees ? C- are fundamental for the good working of the business and process coordination. As for the financial management and accounting, like ev ...