An Assessment of Value Chain Application for Value Creation in E- Retail Based Business

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dc.contributor.author Susanken, Rissa Ruth
dc.date.accessioned 2017-05-31T08:32:12Z
dc.date.available 2017-05-31T08:32:12Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3204
dc.description A Research Project Report Submitted to the School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract This project sought to assess the application of value chain for value creation in e-business based firms specifically e-retail business. The study was guided by the following specific objectives: To establish the extent to which primary activities are applied to create value by e- retail business, to assess the extent that support activities are used to create value by e- retail business, to examine the challenges associated with value chain activities for value creation and finally, investigate the strategies used to create value by e- retail business. A descriptive research design was used for the study in particular reference to e-business in Nairobi Westlands. The study was undertaken using a sample of 136 in Nairobi e-retail business. The target population comprised of the senior, middle, and operational managers. Stratified random sampling technique was used to select the sample that was investigated for the purposes of this study. The population was stratified into low/operational-level, mid-level and senior-level management. The sample size was computed using Yamane’s (1967) formula. A qualitative approach was adopted to collect data using questionnaires that the researcher emailed and hand delivered. The obtained data was then interpreted with the use of the Statistical Package for Social Sciences (SPSS). Additionally, the study used both descriptive and inferential statistics to run the analysis of the data. The results and findings of the study were then represented in the form of tables, graphs and charts. The study found out that primary and support value chain activities were critical in creating value of the products/services offered to the customers. Similarly, support activities such as human resource, procurement, information technology and service functions were equally important in creating value for the customers. The processes of creating value through value chain faced several challenges such as high costs, complexity, some of the managers did not have the right training and skills set. Thus it is suggested that e-retail businesses adopt some of the generic strategies such as cost leadership and differentiation as a way of creating more value for their offerings. The study concluded that value chain activities could be used to create value for the customers. Thus application of the primary and support activities among the e-retail businesses creates value to the customers which in turn creates more market for the e-retail businesses. The study also noted that the process of value chain is complex, costly, requires resources and competent managers. Thus it could discourage the value creation process of the e-retail businesses. The study recommended that e-retail businesses invest on efficiency provision to ensure that their activities are done to produce maximum output at the least cost possible. Also the study recommended that e-retail businesses differentiate their products to ensure their minimize competition and also retain customers. en_US
dc.publisher United States International University - Africa en_US
dc.subject Value Chain en_US
dc.subject Value Creation in E- Retail Based Business en_US
dc.title An Assessment of Value Chain Application for Value Creation in E- Retail Based Business en_US
dc.type Thesis en_US

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