Aggreko's Value Chain Analysis Essay

Improved Essays
Primary Activities – these are activities that relate to the physical creation of the product, sales and after sales service
• Inbound & Outbound Logistics: From the supply of components and engines required to assemble generators and the distribution to the end users the supply chain team in Dumbarton manages Aggreko’s supply chain. Managing the suppliers of both finished products and components for assembly is an integral part of their businesses. The long standing relationships with the suppliers and sourcing relationships across the globe are monitored closely to ensure that services provided comply with Aggreko’s quality standards.
• Operations: Aggreko designs and assemble most of their power equipment using its specialist in-house teams. This gives Aggreko a competitive advantage through economies of scale by not paying the final assembly margin. Also, this gives them the opportunity to optimize the equipment to meet their operational
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From the macro environment analysis carried out using the PESTLE tool, the five forces of competitive position, the value chain analysis, one can conclude that Aggreko has what it takes to thrive in any business environment. Although the likes of APR Energy Plc and the rest are also global players, Aggreko Plc is out performing them because of the focus and strategy of the Aggreko team. Aggreko’s strategy to drive operational efficiency & economies of scale, innovate in product development, build strength and depth management is yielding growth. However, they need not get comfortable, the sector they play in is filled with lots of opportunities as there are emerging markets in Africa, Asia & the Middle East. Entering these emerging markets might me a good strategic move as the organization has what it takes to expand its geographical

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