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Running Head: VALUE CHAIN ANALYSIS OF BANK OF MONTREAL

Value chain analysis of Bank of Montreal
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VALUE CHAIN ANALYSIS OF BANK OF MONTREAL

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Introduction
Value chain analysis helps a firm realize its competitive advantage sources right from the
acquisition of raw materials to the final product. A value chain is a tool that helps the firm to
analyze the activities of the firm that shapes the final product. Several activities take place in the
value chain and ability to determine the sources that give value to the business can help improve
the products, thereby creating a competitive edge for an organization. According to Porter's value
chain analysis, it provides a framework that helps to assign importance to different activities in
the value chain (Simatupang, Piboonrungroj & Williams, 2017). More importantly, the activities
do not need the same scrutiny level since the primary activities are core functions of the business
while secondary are supportive activities. Identification of activities, either primary or secondary,
can help in reducing costs and differentiation of the products. The Bank of Montreal focus the
activities within the value chain to ensure they minimize costs and differentiate the products
which help the firm to be competitive.
Primary Activities
The primary activities are important in creating a competitive advantage for the Bank of
Montreal. Primary activities include inbound logistics, operations, outbound logistics, marketing
and sales, and services. These activities are directly involved in production and selling the
products to the consumers. It is through these activities that the bank is able to improve
efficiency and performance.
Inbound Logistics
The movement of materials and inventory from the supplier gives the firm a competitive
edge since there is a strong relationship that supports receiving, distribution, and storage of
products. The strong relationship between the bank and the suppliers has helped to deal with the
challenges of product development (Simatupang, Piboonrungroj & Williams, 2017). Since most
of the products include services, the bank ensures that the suppliers deliver the materials on time
with the favorable cost to ensure that employees can deliver on their duty. Through that, it has
been among the top five banks in Canada. Bank of Montreal supports collaboration, innovation,
and inclusiveness with the suppliers for a mutually beneficial relationship. Further, the suppliers
must provide products and services with optimal quality and value and those that align with
corporate and social responsibility. Through suppliers' registration criteria, they get the best that
help in product innovation and delivery of services.
Operatio...