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Conduct A Value Chain Analysis

VALUE CHAIN

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Rathiga Arirengan
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30 views

Conduct A Value Chain Analysis

VALUE CHAIN

Uploaded by

Rathiga Arirengan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CONDUCT A VALUE CHAIN ANALYSIS

Value Chain Activities

Understanding all of the primary and secondary processes that go into the production of your good
or service is the first step in carrying out a value chain analysis. It's crucial to carry out this approach for
each of your company's products or services if you sell a variety of them.

Calculate the value and cost of an activity.

Finding the value that each activity brings to the process and its associated expenses comes next
once the primary and secondary activities have been identified.

When considering the value produced by an activity, consider how each one improves the happiness or
enjoyment of the end user. How does it add value to my company? For instance, does using a particular
material make a product more luxury or durable for the user? Does adding a specific feature improve the
likelihood that your business will experience network effects and grow?

In a similar vein, it's crucial to comprehend the charges related to each stage of the procedure. Depending
on your circumstance, you might discover that cutting costs is a simple method to get better the value each
transaction provides.

Identify Opportunities for Competitive Advantage

You can assess your value chain using the perspective of whatever competitive advantage you're
attempting to acquire once you've assembled it and comprehend the cost and value involved with each
step. For instance, if cutting costs is your main priority, you should assess every link in your value chain
from that perspective. Which procedures might be more effective? Exist any that could be deleted or
outsourced in order to drastically cut expenses but still produce little value? In a similar vein, which links
in your value chain have the best possibility to fulfil your core goal of product differentiation? Would the
added value outweigh the expenditure of more money?

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