Value chain analysis

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VALUE CHAIN ANALYSIS (example printing company)
WIUU Business Policy, 2017. J. Bentz

2. USES OF THE VALUECHAIN

The sources of the competitive advantage of a firm can be
seen from its discrete activities and how they interact with one
and another.
The value chain is a tool for systematically examining the
activities of a firm and how they interact with one another and
affect each other’s cost and performance.
A firm gains a competitive advantage by performing these
activities better or at lower cost than competitors.
Helps you to stay out of the “No Profit Zone”
Presents opportunities for integration
Aligns spending with value processes
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WIUU Business Policy, 2017. J. Bentz

3. VERTICAL LINKAGE

LINKAGES CAN ALSO EXIST OUTSIDE THE FIRM; FOR INSTANCE
THERE IS A LINKAGE BETWEEN A FIRM’S CHAIN AND THE VALUE
CHAIN OF ITS SUPPLIERS AND CHANNELS.
e.g. THE ACTIVITIES OF THE RAW MATERIALS SUPPLIERS AFFECT THE
ACTIVITIES OF THE FIRM. SIMILARLY, THE ACTIVITIES OF THE
DISTRIBUTOR ALSO AFFECT THE FIRM.
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WIUU Business Policy, 2017. J. Bentz

4. Estimated Value chain costs for CD recording/ distribution through traditional trade

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WIUU Business Policy, 2017. J. Bentz

5. The value chain system for an entire industry

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WIUU Business Policy, 2017. J. Bentz

6. Benchmarking

CORE CONCEPT
Benchmarking is a potent tool for learning which companies are best at
performing particular activities and then using their techniques (or best
practice) to improve the cost and effectiveness of a company’s own
internal activities.
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WIUU Business Policy, 2017. J. Bentz

7. Translating Company Performance of Value Chain Activities into Competitive Advantage

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WIUU Business Policy, 2017. J. Bentz