Value Chain Task

"You have decided to open an Internet site to buy and sell used CDs to other students. Describe the value chain for your new business."


If I opened an internet site to buy and sell used CDs to other students, my value chain would consist of the following.

Product: First, I would need a source for used CDs aside of the ones I may currently own. This would be where other students selling me their own CDs would come in. Since I’m not selling new compact discs, I don’t need a distributor, or any larger business supporting my store.

Storefront: Second, I would need a web server or internet storefront to set-up my store to sell the CDs. Without the site, I would have no means to practically sell my product.

Storage: Next, I would need a place to store the CDs while they are waiting to be sold. I could store them in my house, a storage unit, or any place that I could have easy access to send them as soon as possible.

Shipping: Additionally, the store would need a mechanism to ship the item. I would most likely have to use the postal service or a private shipping company.

Marketing: Finally, my store would need a marketing system to get the word out about my business in order to increase revenues.