Topics: Supply chain, Supply chain management, Value chain Pages: 9 (2615 words) Published: October 7, 2014
Value Chain Analysis
Microsoft Corporation is a large organization in the application software industry, technology sector. It was founded in 1975 and currently employs about 90,000 people with the headquarters in Redmond, Washington. The company develops software for businesses and personal computers. Microsoft Corporation develops, licenses, and supports a range of software products and services for various computing devices worldwide. The company’s Windows & Windows Live Division segment offers PC operating system that primarily includes Windows 7 and Windows Vista operating systems; Windows live suite of applications and Web services; and Microsoft PC hardware products ( Microsoft also offers enterprise consulting services and training and certification to developers and information technology professionals, as well as builds standalone and software development lifecycle tools for software architects, developers, testers, and project managers. The company also offers gaming systems which include the well-known Xbox 360 and accessories such as Kinect and Xbox 360 games. Microsoft markets and distributes its products and services through original equipment manufacturers, distributors, and resellers, as well as through online ( Microsoft Corporation has been known to have an efficient value chain and offering the customer great value with its products. A value chain assists in creating competitive advantage, and this could be achieved in different ways. The organization has to place itself in a competitive position fist. The competitive position is a dynamic process, a “process rendered even potentially more dynamic by the drivers underlying the ‘new economy’” (Walters, & Rainbird, 2007, pg. 384). A value chain is also assisting in the creation of competitive advantage by implementing a strategy on extending the alliance and partnership models where shifts or migration of value are occurring among companies. Also a strong position in the industry value chain is based on the research and development and existing networks. The value chain which consists of the demand chain and the supply chain is what drives a company, and this is what drives Microsoft too. The value chain management can make a company rise to the top of its industry or fall to the bottom of it. It is in fact important that the supply chain and demand chain work together in a company and the focus is placed on both equally. The supply chain is focused more on reducing costs, and the demand chain is leaning more towards the needs of the customer. It is better to have an effective value chain rather than an efficient value chain, and in order to achieve that organizations need to be flexible. Microsoft is a flexible and dynamic organization which adapts to changes in the industry, economic situations, customer demands, wants and needs. Microsoft is a competitive company because it has a solid strategy and it realizes that the most important factor is change and adaptability in its supply chain management as well as in its demand chain management. Demand Chain Analysis

Microsoft Corporation considers that for consumer goods manufacturers, the key to profitable growth is to evolve the enterprise into a demand-driven supply network, moving from a "push" method of moving product, which is based on incomplete or inaccurate demand information, to a "pull" method, which is based on quick response to real-time demand signals. Supply chain management solutions from Microsoft and its partner network addresses the realities of today's complex global supply chains and provide the needed foundation on which to transform and improve supply chains, moving them into more demand-driven models (, 2011). Identification of Customer, Market, Wants and Needs

The demand chain of a corporation allows it to create a clear vision of future demand and to align all supplies and sales processes around that vision. Microsoft...

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