Value Chain in Modern Media - Coursework Example

Introduction: Value chains are activities that an organization or a firm engages in, for purposes of delivering a valuable service, or product, for a target market (Currie, 2004). The major proponent of this concept is Michael Porter when he was analyzing the methods which business organizations can use to achieve a competitive advantage. This idea of a value chain emanates from the view of an organization as a process (Currie, 2004). The media industry is also regulated by the principles of the value chain model. There is stiff competition in the media industry, with almost new players joining the industry on a daily basis. To achieve a competitive advantage, the media organizations have to enact policies aimed at satisfying the various needs of their customers (Friedrichsen, 2013). The satisfaction of the needs of customers is essential in ensuring that the organization under consideration achieves success in whatever business that they are engaged in (Sehgal, 2011). It is difficult to gratify these needs without an effective strategy of adding value to the services of the organization. To achieve success in this area, there is a need of following the laid down procedures and methods established by Porter, in regard to the addition of value (Friedrichsen, 2013). The traditional media industry consisted on the use of newspapers, radios, and television channels. These organizations had to disseminate news, and they divided their process of adding value into two (Friedrichsen, 2013). That is primary and secondary activities. However, with the development of technological innovations and the internet, new methods of providing information arose. The internet and the social media are now becoming popular, and media organizations are forced to change their strategies (Walters and Rainbird, 2004). It is therefore important for these organizations to constantly innovate their products and services with the intention of developing products that will carter for the needs of their target customers (Currie, 2004). It is therefore fair to denote that effective use of the value chain model developed by Porter will help a media organization to provide high quality services. This is despite the evolution of other media organizations such as the social media, and the internet. Porters Value Chain Model: The idea that surrounds the concept of value chain emanates from the view of an organization as a process. This concept of value chain sees a manufacturing or service organization as a system that comprises of subsystems (Friedrichsen, 2013). These subsystems have transformation processes, inputs, and out puts, and they involve the consumption and acquisition of resources. These resources are land, buildings, equipment, labor, money, management, and administration (Currie, 2004). Effective and efficient carrying out of value chain activities will determine whether an organization achieves profits or not (Currie, 2004). Most organizations engage in hundreds of activities that help in converting inputs to outputs. It is possible to classify these activities as either primary or secondary activities. Porter identifies the following as the major primary activities that an organization will engage in (Friedrichsen, 2013), 1. Inbound Logistics- This involves the relationship that a business organization has with its suppliers. It includes any activity that an organization needs to store, receive, and disseminate inputs. 2. Operations- This involves every activity that an organization engages in for purposes of converting inputs, to outputs. 3. Outbound Logistics- This includes any activity that an organization will undertake, for purposes of storing, collecting, and distributing output. 4. Marketing and Sales- This includes any activity that aims at informing buyers on the quality of the organizations services and products, and facilitating their purchase. 5. Service-This involves any activity that an organization engages in, with the intention of keeping the service or product working for the buyer. This is after the product is sold and delivered. Porter identifies the following as the secondary activities that a business organization can engage in (Jaccard, 2013), 1. Procurement- This is the acquisition of the resources or inputs an organization needs to carry out its activities. 2. Human Resource Management-This comprises of various activities that involves hiring, training, and dismissal of workers. This activity also involves compensating the employees of the organization, in circumstances where their rights are breached. 3. Technical Development-This pertains to the hardware, equipment, procedures, software, and the technical knowledge that an organization has and it uses to transform the inputs, in to the outputs. This also includes the innovative capability of a business organization. 4. Infrastructure- This helps in satisfying the needs of the company, tying the various part of it together. It comprises of departments of functions such as accounting, finance, planning, legal, general management, quality assurance, government relations, and public affairs. Almost all companies in their respective industries are involved in implementing the provisions of this value chain model by Mr. Porter (Currie, 2004). The Modern Media and Porters Value Chain Model: The media industry is greatly involved in the implementation of the provisions advocated by the value chain model of Porter. This is specifically the traditional media. Take for instance the newspaper organizations. The inbound activities that these organizations engaged in, included creation of a purchasing unit, responsible for buying papers for the organization. It also included developing a warehouse system, for safe storage. These organizations had to implement almost all the primary and secondary activities of the Porters value chain model (Currie, 2004). Because of advances in information technology, there has been a growth and development of new media avenues. People are now involved in getting information from the internet and the social media. Traditional models of media, such as newspapers are becoming unpopular, and many people are now (Currie, 2004). This is because people are now relying on the internet for purposes of accessing news or information. Information technology tools such as You Tube enable users and media organizations to posts videos that aim at providing information. Media organizations such as BBC, CNN, have their own websites, which is also interactive, and it aims at providing information (Friedrichsen, 2013). There is also the emergence of internet giants such as Yahoo, which are responsible for providing information, or the current events that occurs in the world. Some of the important primary activity that the new media organizations engage in, includes operations, and sales and marketing (Currie, 2004). Operations involve any activity that an organization engages in, with the intention of converting inputs, into out puts. Under this circumstance, the inputs of an organization are the information that it wants people to access or read (Graham and Allan, 2006). The out puts, are the information that is already placed in the websites of the media institution. The process of making sure that the contents of the media are made available to the population can be complex, or even easy (Currie, 2004). This depends on the type of information technology tool that an organization uses. For example, when using media tools such as You Tube, all that an organization needs to undertake is to upload the information into You Tube (Jaccard, 2013). This is a process that is easy to accomplish, and does not take time. Some media organizations such as BBC, CNN, Al Jazeera have their own websites, that they sue to upload any information that they want to disseminate to the public (Friedrichsen, 2013). This is an aspect of operations, and it is mainly because it involves the conversion of input, into output, i.e. raw in formation, to final information, for purposes of consumption by the target market or audience. The new media industry cannot do without the concepts of marketing. This involves convincing customers or the target audience to consume the products of the organization (Jaccard, 2013). With the development of the internet, new models of marketing have emerged. They aim at promoting the products of the organization. Amongst the popular and acceptable methods of marketing includes the use of Google ad sense (Friedrichsen, 2013). Google ad sense is a pay per click advertisement program that enable companies to advertise their products through the internet. Media organizations can use these channels to promote their websites or services. Furthermore, there is the emergence of email marketing, where media organizations would promote their services through constant emailing to their target audience or customers (Sehgal, 2011). Online marketing and advertisements are slowly replacing the traditional methods of advertisements, which include the use of newspapers, magazines, radios, etc. All the secondary activities of the Porters Value Chain model are important (Friedrichsen, 2013). For example, under procurements, an organization will need to procure computers, and other software’s and hardware’s needs to run an internet media organization. There will also be a need of good human resource management policies. These would help in recruiting the highly skilled workers. For example, the organization would require journalists, who will gather information, and computer technicians who will have the responsibility of maintaining the websites of the organization. There is a need of a human resource. This department has the responsibility of managing and maintaining the employees of the organization (Friedrichsen, 2013). The aspects of technical development, as advocated by Porter are widely seen in this industry. This involves the equipments, hardware’s, software’s, and technical knowledge which is essential for ensuring the success of the media organization. The modern media heavily relies on new technological innovations and skills for purposes of making their work to be a success (Graham and Allan, 2006). The new age media needs hardware’s such as desktops, laptops, ipads, tablets, for purposes of disseminating information. Software’s such as web 2.0; Drupal, Joomla, etc are needed for construction and maintenance of websites, and other tools of disseminating information from the internet (Friedrichsen, 2013). Without a proper infrastructure, it is impossible for the modern media organization to succeed. This is because the infrastructure consists of the management, who play an important role in developing policies aimed at advancing the interests of the organization. It also consists of the finance and accounting department, without which, the media organization will be unable to carry out its mandate. The quality department would ensure that the media organization is effective and efficient in whatever activity it is involved in. Media organizations such as CNN, BBC, Al Jazeera, etc have developed an infrastructure, which ensures that they are effective in whatever they engage in (Friedrichsen, 2013). Conclusion: The Porters value chain model is still applicable in the modern media. This is despite changes in the manner in which the modern media disseminates information. The value chain model advocated by Porter covers almost all the processes that a business organization needs to initiate for purposes of adding value to its products or services. This model is therefore applicable in any situation or business operation of a company. Bibliography: Currie, W. (2004). Value creation from e-business models. Amsterdam: Elsevier Butterworth Heinemann. Friedrichsen, M. (2013). Handbook of social media management value chain and business models in changing media markets. Heidelberg: Springer. Graham, T., & Allan, W. (2006). Management Accounting Business Strategy. Oxford: Elsevier Science & Technology. Jaccard, M. (2013). The objective is quality: introduction to quality, performance and sustainability management systems. Boca Raton, Fla. : London: EFPL ; Taylor & Francis [distributor]. Sehgal, V. (2011). Supply chain as strategic asset: the key to reaching business goals. Hoboken, N.J.: Wiley. Walters, D., & Rainbird, M. (2004). The value chain. Bradford, England: Emerald Group Pub.. Read More