Nvidia value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Specifically, business leaders can create competitive advantage through dividing the business into various activities and analysing each activity individually from value creation perspective. Figure below illustrates the essence of Nvidia value chain analysis. Value chain analysis Primary Activities in Nvidia Value Chain Analysis Nvidia Inbound logistics Nvidia inbound logistics involves managing the supply chain of components and raw materials into the premises of its contract manufacturers. The multinational technology company performs quality checks of semiconductors and other spare parts using test equipment purchased from industry-leading suppliers such as Advantest America Inc. Nvidia benefits from the economies of scale in inbound logistics activities due to the large amount of spare parts and components it purchases. Furthermore, the company has strategic relationships with its key suppliers in place and these relationships play an instrumental role in new product development. Nvidia Operations Nvidia employs fabless manufacturing strategy. It employs third party companies outside of United States for all phases of the manufacturing process, including wafer fabrication, assembly, testing, and packaging.[1] Nvidia does not engage in any of these activities directly and chooses to focus the design, marketing and distribution of its products. The company works with world-class manufacturers to produce its products. Semiconductor wafers are produced by leading companies such as Taiwan Semiconductor Manufacturing Company Limited and Samsung Electronics Co. Ltd, adapter card products and switch systems are produced by the likes of Flex Ltd., Jabil Inc., and Universal Scientific Industrial Co., Ltd. and Fabrinet manufactures Nvidia cables. Assembly, testing and packaging of products and platforms are done by Amkor Technology, King Yuan Electronics Co., Ltd., Omni Logistics, LLC, Siliconware Precision Industries Company Ltd., Wistron Corporation…Nvidia Value Chain Analysis
Wednesday, June 21, 2023
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Nvidia value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Specifically, business leaders can create competitive advantage through dividing the business into various activities and analysing each activity individually from value creation perspective. Figure below illustrates the essence of Nvidia value chain analysis. Value chain analysis Primary Activities in Nvidia Value Chain Analysis Nvidia Inbound logistics Nvidia inbound logistics involves managing the supply chain of components and raw materials into the premises of its contract manufacturers. The multinational technology company performs quality checks of semiconductors and other spare parts using test equipment purchased from industry-leading suppliers such as Advantest America Inc. Nvidia benefits from the economies of scale in inbound logistics activities due to the large amount of spare parts and components it purchases. Furthermore, the company has strategic relationships with its key suppliers in place and these relationships play an instrumental role in new product development. Nvidia Operations Nvidia employs fabless manufacturing strategy. It employs third party companies outside of United States for all phases of the manufacturing process, including wafer fabrication, assembly, testing, and packaging.[1] Nvidia does not engage in any of these activities directly and chooses to focus the design, marketing and distribution of its products. The company works with world-class manufacturers to produce its products. Semiconductor wafers are produced by leading companies such as Taiwan Semiconductor Manufacturing Company Limited and Samsung Electronics Co. Ltd, adapter card products and switch systems are produced by the likes of Flex Ltd., Jabil Inc., and Universal Scientific Industrial Co., Ltd. and Fabrinet manufactures Nvidia cables. Assembly, testing and packaging of products and platforms are done by Amkor Technology, King Yuan Electronics Co., Ltd., Omni Logistics, LLC, Siliconware Precision Industries Company Ltd., Wistron Corporation…
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