Value Chain Framework - Template and Guide
Value Chain Framework Definition
The Value Chain tool is useful to design a map of all the activities within a Business or an industry. It helps to disaggregate a business/industry into its ‘value’ activities. It can be used to compare industries and firms or to determine and analyze costs.
Three main steps in performing a value chain analysis
I. Identify: (1) Identify the sequential macro activities within your industry/business, (2) Identify the main activities for each macro activity, and (3) Identify which activity brings value to the customer.
II. Analyze: (1) Analyze the main revenue and cost drivers, (2) Analyze your strength and weaknesses compared to your competitors, and (3) Analyze your key areas of improvement.
III. Decide: Decide which strategy to implement (e.g. outsourcing strategy, acquisition strategy, low cost strategy, etc.) in order to acquire or maintain a sustainable competitive advantage.
Need more help? Check our Toolkits:
- Management Consulting Toolkit
- Corporate/Business Strategy and Strategic Planning Toolkit
- Sales, Marketing & Communication Strategy Toolkit
