Corporate Value Chain of Maytag Company

Primary activities

Suppliers

One of the major Suppliers of Maytag is  Honeywell’s Micro switch Division, the company has also made arrangement with large steel supplier that led to a team effort to establish hardness specifications on our cabinet & door steel to improve fabrication. This effort was very successful; company is supplying our entire steel requirement.  Moreover, the strategic alliance has been also taken place between Maytag & suppliers, in order to speed up the application of new technology to new products & process.

Strengths

The quality improvement & reduction in cost reached all our expectations this, e.g. because of the supplier’s arrangement Maytag able to utilize its technology (fuzzy logic), technology that Maytag did not have at that time. The resulting partnership in product development resulted in Maytag’s new IntelliSense Dishwasher.

Weaknesses 

It may lock company deeper into same industry. It has results in fixed sources of supply & less flexibility in accommodating buyer demands for product variety. It has also reduced flexibility to make changes in components parts which may lengthen design time & ability to introduce new products.

Manufacturing

The Maytag Appliances unit contained the original Maytag Company plus the manufacturing plants of Admiral, Magic Chef, & Amana in addition to the Jackson dishwasher plant. Maytag has been investing millions of dollars in upgrading its plants and other production facilities, more over Maytag Corporation launched a lean Sigma initiative. One lean manufacturing system is in place, linking various parts of supply chain electronically is relatively easy. 

Strengths

These manufacturing facilities will:

Reduce the waste

Managing shorter lead times 

Increasing flexibility

Weaknesses

In home appliance industry technology has been changing rapidly so further investment may require for upgrading the manufacturing and other needed facilities. Specialized manufacturing plants (assets) can’t be used for other purposes.

Distribution

Distribution has been done through chain of stores, retail outlets & through company’s own outlets

Strengths

Make product available everywhere

Reduce the lead time

Better Quality would be  delivered to the end users

Weaknesses              

It will increase the lead time

Product will not available on the time

Demand will exceeds the supply

Services

Activities cost and asset associated with providing assistance to buyers.

The following valued services are provided to its consumers:

 In the outlet

 For on time delivery

After sales service

Using the customer track record system the marketers of Maytag contact its customers directly.

Strengths

 Maytag has qualified and skilled workers.

Weaknesses

Outsourced after sales service, which may not perform up to the customer needs/satisfaction.

Support Activities

Product R&D Technology                      

Above mentioned are the supporting activities of the value chain primary activities. Through R&D they can develop more efficient system of manufacturing its products and efficient way of tracking and record of customers & having direct link through internet. i Thus enabling HR to work efficiently and decreasing its work time and labor costs. The general administration looks toward the overall requirement and needs of raw material and problems associated with its different manufacturing plants.

Strengths

Supportive and corrective actions 

Weaknesses

No action taken.