Value analysis: the case of an automobile component

Abstract

When a customer buys a product he pays a price and this is the value he received. This value is a total combination of value added by every participant involved in making the product. Thus the benefits are distributed across all the participants. Generally the firm that finally sells the product receives more profit than the suppliers who sell minor components and the firms that offer complementary services. This project is intended to do a value chain analysis for an automobile component-Automatic Transmission gear engine. The profit earned by all the participants is estimated, Porter s analysis is done to look at the competitive advantage of the firm, market segmentation and the reasons for the firm to outsource are also studied.