The evolution of Corporate Reputation Management in Chinese Logistics Market

Adam Figiel

The idea of a value chain was first suggested by Michael Porter (1985) to depict how customer value accumulates along a chain of activities that lead to an end product or service. Porter describes the value chain as the internal processes or activities a company performs “to design, produce, market, deliver and support its product.” He further states that “a firm’s value chain and the way it performs individual activities are a reflection of its history, its strategy, its approach to implementing its strategy, and the underlying economics of the activities themselves.” These are generally also the line activities of the organization. They include: inbound logistics—material handling and warehousing; operations—transforming inputs into the final product; outbound logistics—order processing and distribution; marketing and sales—communication, pricing and channel management; and service— installation, repair and parts.