Value Chain Analysis
Originally published: 22/04/2025 08:33
Publication number: ELQ-22462-1
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Value Chain Analysis

Analysing business activities to reduce costs and create customer value.

Description

This Value Chain Analysis presentation offers a detailed exploration of how organizations can break down and assess their internal activities to gain a competitive advantage through cost reduction and value creation. It introduces the concept of identifying both primary activities—such as inbound logistics, operations, outbound logistics, marketing & sales, and services—and support activities, including firm infrastructure, human resource management, technology development, and procurement.

Using Porter’s Value Chain Model, the presentation guides viewers through steps to determine the cost significance of each activity, identify cost drivers, analyze interdependencies, and recognize opportunities for cost optimization and differentiation. It also compares value chain analysis with supply chain management and highlights how customer satisfaction, innovation, and strategic sourcing play vital roles in improving overall business performance.

The content further distinguishes between physical, virtual, business-unit, and global value chains, illustrating their applications in various business contexts. Special emphasis is placed on the printed electronics industry as a real-world example, demonstrating a complete industry-specific value chain.

This presentation is ideal for strategists, business analysts, and managers seeking to enhance operational efficiency and strategic planning. It concludes with checklists and analysis tools to help businesses implement value chain analysis effectively and sustainably.

This Best Practice includes
1 Powerpoint Slide

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