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Developed by Michael Porter, Value Chain Analysis is strategic management framework used to analyze the processes and key activities performed by a business or industry. This framework illustrates where value is created within an industry or company.
The conventional view of the Porter Value Chain (depicted in a multi-level chevron diagram) captures 5 primary activities and 4 support (secondary) activities:
• Inbound Logistics
• Outbound Logistics
• Marketing & Sales
• Service & After Sales Support
• Firm Infrastructure
• Human Resource Management
• Technology Development (IT)
Through Value Chain Analysis, we can identify areas of competitive advantage (or disadvantage) by benchmarking cost drivers. It also provides a structure for performing competitive analysis by separating the value generating stages. This analysis also allows your organization to analyze opportunities for backward and forward integration by including suppliers and end-customers in the Value Chain.
Value Chain Analysis also drives strategic hypotheses to answer several critical strategic management questions:
• Where are we, and our competitors, earning money? Why?
• Should we forward or backward integrate?
• Should we outsource or spin-off value activities (i.e. business processes)?
• What are the industry critical success factors?
• What are our managerial action plans to control costs, improve service, and increase delivered value?
This Value Chain Analysis PPT presentation breaks down a 4-step process to Value Chain Analysis:
1. Identify the industry Value Chain and map the linkages between the industry value activities.
2. Assign costs, revenues and assets to value activities.
3. Determine the relevant cost drivers for each value activity.
4. Identify potential competitive advantages by either controlling cost drivers better than competitors or reconfiguring the value chain to better leverage the organization's strengths.
Value Chain Analysis is a powerful tool in Strategic Management. This PowerPoint presentation provides an in-depth explanation of the framework with detailed examples and is the same training material used by global management consulting firms.
We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
We have served 100s of clients clients that range from Fortune 500 companies to startups to $1B+ private companies.
Utilize our consulting frameworks to apply structured thinking & analysis to address your business challenges, uncover strategic insights, and implement workable solutions. Our PowerPoint presentations follow traditional consulting slide design formats, starting with a clear slide headline. Easily customize and repurpose our slides for your own business presentations.
Beyond business frameworks & methodologies, we also offer PowerPoint templates and other business templates. Our templates are professionally designed and have been used in thousands of deliverables & work products across hundreds of clients.
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
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