Value Chain

The value chain for the CD Web site is different for a company that produces the CDs.  The raw materials for the company would be the used CDs.  The inbound logistics for the site is the cost of getting the used CDs to the storage facility.

            The production for the company would be the production of the Web site, and the placement of the CDs online.

            The storage for both the finished product and the CDs that are shipped in are the same place.  You may move them from one spot in the storage facility to another, but being that there is no major difference, there is no need for a separate storage facility.  You might get a separate storage facility for a company producing goods from raw materials.

            The outbound logistics are the cost that it takes to get the CDs to the customer.  If you were delivering it to the person yourself, the only cost would be your time.  However if you are mailing the CDs, then the cost will be the cost of postage.

            The marketing and sales part of the value chain would be the cost of posters on bulletin boards around campus, an advertisement in the school newspaper, or an ad on the campus television/radio station.  Anything that helps get people to know about your service would fall under this category.  It may also include any extra charges for selling the product (sales tax, and credit card fees)

            The final part of the value chain is the customer service.  This could be finding out what customer complaints there are, and doing whatever you can to fix them.  If you are shipping the CDs to the students, then you should have a tracking order option for them.