Value Chain Analysis for a Mexican Yoghurt Business

Step 1: Activity Analysis

Once a team responsible for starting the business has been formed, they need to find ways of contributing towards the experience of their customer. This means that there will be many business processes that will be used to serve and attract the customer. Therefore, the products which in this case are the Mexican yoghurt will have to be effectively advertised to the customers.

Step 2: Value Analysis

The Mexican yoghurt shop is quite unique and mostly because it serves a low fat and natural product. Once customers start buying the yoghurts they will be rewarded based upon the number of purchases that they make. In this case, a customer can get extra yoghurt depending on the yoghurts they have bought. The shops will be located in various key locations in the country, such as near universities, colleges and gyms. This will assist in ensuring that major competitors such as Starbucks and McDonalds do not over shadow the Mexican yoghurt as well as other products. Furthermore, the chosen locations are quite desirable because they have a diverse range of customers who will be willing to try to out the Mexican yoghurt.

The food served at the Mexican yoghurt shop is extremely nutritious and this is the reason why it will attract a different type of customer when compared to that of its competitors. People interested in healthy eating can be sure to benefit from the products being offered. The prices for the products on offer are quite affordable unlike the other yoghurts being sold in mainstream restaurants and fast foods. For example, the price of yoghurt at Starbucks is pricier than the one at the Mexican yoghurt shop.

Michael Porter came up with the value chain, which should be used by a business that wants to achieve competitive advantage. The Mexican shops face threats of entrance from other yoghurt businesses because the barrier entry is quite low. It is easy for any individual to start a yoghurt business and this increases the existing competition. Also, it should be known that there are few suppliers of Mexican yoghurt products and thus the many suppliers would be suitable for the Mexican yoghurt. The suppliers contribute quite a lot to the success of a business and have to be kept happy at all times. Since there are not many shops that sell Mexican yoghurt, it is likely that the buyers will not have a say in the price of the products. Porter also suggested that there is usually a threat by substitutes and this refers to other types of yoghurt available in the market. Lastly, since the market is always improving, the Mexican yoghurt shops need to find ways of improving their products so that effectively compete with other products.

Step 3: Evaluating changes and the plan for action

Once the value chain analysis is done, it is time for action to take place. This means that there will be many ideas that can be used to increase the value customers receive when delivering to them the Mexican yoghurts. If everything is delivered to the customers in the right way, the business is sure to succeed. Ensure that a strong relationship exists with the customers in order to obtain feedback about how they think about the Mexican yoghurt, as well as other products. This is a perfect way of confirming if you know what the customer wants because they are responsible for promoting the success of the business.