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Value Chain
Analysis Framework
Your Company Name
Value Chain Analysis Framework
Primary
Activities
Support
Activities
Inbound
Logistics
o Real-time inbound
inventory data
o Location of
distribution
facilities
o Trucks
o Material Handling
o Warehouse
Operations
oStandardized
model
oAccess to real-time
sales & inventory
system
Outbound
Logistics
oOrder processing
oFull delivery trucks
Marketing &
Sales
oPricing
oCommunication
oPromotion
oProduct based on
community needs
oLow prices
After Sales
Service
oDelivery
oInstallation
oRepair
oGreeters
oCustomer
service focus
Firm Infrastructure Management, Finance, Legal, Planning
Human resource management
Professional development, Employee relations, Performance
appraisals, Recruiting, Competitive wages, Training programs
Technology Development
Integrated supply chain system, Real-time sales
information
Procurement
Real-time inventory, Communication with suppliers,
Purchase supplies and materials
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2
Primary
Activities
DescriptionPrimary Activity
Operations
The manufacture of products and services – the way in
which resource inputs (e.g. materials) are converted to
outputs (e.g. products)
Inbound Logistics
All those activities concerned with receiving
and storing externally sourced materials
Service
All those activities associated with maintaining
product performance after the product has been sold
Outbound Logistics
All those activities associated with getting
finished goods and services to buyers
Marketing & Sales
Essentially an information activity – informing buyers
and consumers about products and services (benefits,
use, price etc.)
3
Secondary
Activities
DescriptionSecondary
Procurement
All those activities concerned with receiving
and storing externally sourced materials
Human Resource Management
All those activities concerned with receiving and storing
externally sourced materials
Technology Development
All those activities associated with getting
finished goods and services to buyers
Infrastructure
Essentially an information activity – informing buyers
and consumers about products and services
(benefits, use, price etc.)
4
5
This approach is used when organizations try to
compete on costs & want to understand the
sources of their cost advantage or disadvantage &
what factors drive those costs
Cost Advantage
The firms that strive to create
superior products or services use
differentiation advantage
approach
Differentiation Advantage
Value Chain – Approaches To Perform Analysis
Competitive Advantages
Types
There are two different approaches on how to perform the analysis, which depend on what type of
competitive advantage a company wants to create
CostAdvantage
Identify the firm’s primary and
support activities
o All the activities (from receiving and storing
materials to marketing, selling and after sales
support) that are undertaken to produce goods or
services have to be clearly identified and separated
from each other
o This requires an adequate knowledge of company’s
operations because value chain activities are not
organized in the same way as the company itself
Establish the relative importance of
each activity in the total cost of the
product
o The total costs of producing a product or service must
be broken down and assigned to each activity. Activity
based costing is used to calculate costs for each
process
o Activities that are the major sources of cost or done
inefficiently (when benchmarked against competitors)
must be addressed first
Step
1
Step
2
6
7
Step
3
Identify cost drivers for each
activity
o Only by understanding what factors drive the
costs, managers can focus on improving them.
o Costs for labor-intensive activities will be driven
by work hours, work speed, wage rate, etc
Step
4
Identify links between activities
o Reduction of costs in one activity may lead to further
cost reductions in subsequent activities.
o Identifying the links between activities will lead to
better understanding how cost improvements would
affect he whole value chain
Step
5 Identify opportunities for reducing
costs
o When the company knows its inefficient activities and
cost drivers, it can plan on how to improve them
o Too high wage rates can be dealt with by increasing
production speed, outsourcing jobs to low wage
countries or installing more automated processes
CostAdvantage
Differentiation Advantage
After identifying all value chain
activities, managers have to focus
on those activities that contribute
the most to creating customer
value
o Managers can use the following
strategies to increase product
differentiation and customer value:
o Add more product features
o Focus on customer service &
responsiveness
o Increase customization
o Offer complementary products
Usually, superior differentiation and
customer value will be the result of
many interrelated activities and
strategies used. The best combination
of them should be used to pursue
sustainable differentiation advantage
Identify the Best
Sustainable Differentiation
Step 3
Evaluate the Differentiation
Strategies for Improving Customer
Value
Step 2
Identify the Customers’ Value-
creating Activities
Step 1
8
Value Chain
Analysis-3 Step
Process
9
Evaluation & Planning
Evaluate whether it is worth
making changes, and then plan
for action
Activity Analysis
Identify the activities you
undertake to deliver your product
or service
Value Analysis
For each activity thin through what
you would do to add the greatest
value for your customer
Competitor’s Value Analysis
Value
Activity 1
Value
Activity 2
Value
Activity 3
Value
Activity 4
Value
Activity 5
Competitor 1
Competitor 2
Competitor 3
Competitor 4
Competitor 5
Competitor 6
Competitor 7
Competitor 8
10
11
It’s Time For a
Coffee Break
12
Chart & Graphs
0
10
20
30
40
50
60
70
0 10 20 30 40 50
Product 01
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Product 02
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Product 03
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Bubble
Chart
13
This graph/chart is linked to excel, and changes automatically based
on data. Just left click on it and select “Edit Data”.
Donut Pie Chart
40%
30%
20%
10%
Product 02
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attention.
Product 01
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attention.
Product 04
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attention.
Product 03
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attention.
14
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
Stock Chart
0
10
20
30
40
50
60
70
0
20
40
60
80
100
120
140
160
FY '14 FY '15 FY '16 FY '17 FY '18
Volume
Open
Low
High
Close
Product 01
15
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
0
10
20
30
40
50
60
70
80
Product 01
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Product 02
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Product 03
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Radar
Chart
16
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
Scatter Chart
5
20
10 9
35
15
30 30
56
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
X-Values
Y-Values
Product 01
17
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
18
Additional Slides
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Our
Vision
19
Our Team20
Anita Parker
Web Designer
Tom Torres
CEO
Robin Carter
Manager
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Jasmin Smith
EDITOR
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About Us
Target Audiences
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Values client
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Premium services
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Preferred by many
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21
Our Goal
01
02
03
04
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Comparison
12:51 MINUTES/DAY
AVG.TIME SPENT ON TWITTER
645,750,000
USERS
500+ MILLION
TWEETS EVERY DAY
18 MINUTES/DAY
AVG.TIME SPENT ON FACEBOOK
1,230,000,000
USERS
350 MILLION
PHOTOS UPLOADED EVERY DAY
23
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Financial
Deposits
$423
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audience's attention.
Net Income
$345
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audience's attention.
Revenue
$234
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24
Dashboard
Medium
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High
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Low
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…Sergey Brin
Quotes
26
Obviously everyone wants to be successful,
but I want to be looked back on as being
on as being very innovative ,very trusted
and ethical and ultimately making a big
difference in the world.
Location
Russia
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Australia
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Brazil
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Canada
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Puzzle
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01
02
03
04
28
Target
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29
Circular
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Venn
Text Here
Text Here
Text Here
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31
Mind Map
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Lego
04
03
02
01
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Silhouettes
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01
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02
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Hierarchy
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35
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Bulb Or Idea
01
02
03
04
05
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Magnifying Glass
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Text Hare
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Text Hare
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Text Hare
37
Address
# street number, city, state
Contact Numbers:
0123456789
Email Address:
emailaddress@gmail.com
Thank
you
38

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Value Chain Analysis Framework PowerPoint Presentation Slides

  • 2. Value Chain Analysis Framework Primary Activities Support Activities Inbound Logistics o Real-time inbound inventory data o Location of distribution facilities o Trucks o Material Handling o Warehouse Operations oStandardized model oAccess to real-time sales & inventory system Outbound Logistics oOrder processing oFull delivery trucks Marketing & Sales oPricing oCommunication oPromotion oProduct based on community needs oLow prices After Sales Service oDelivery oInstallation oRepair oGreeters oCustomer service focus Firm Infrastructure Management, Finance, Legal, Planning Human resource management Professional development, Employee relations, Performance appraisals, Recruiting, Competitive wages, Training programs Technology Development Integrated supply chain system, Real-time sales information Procurement Real-time inventory, Communication with suppliers, Purchase supplies and materials This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2
  • 3. Primary Activities DescriptionPrimary Activity Operations The manufacture of products and services – the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) Inbound Logistics All those activities concerned with receiving and storing externally sourced materials Service All those activities associated with maintaining product performance after the product has been sold Outbound Logistics All those activities associated with getting finished goods and services to buyers Marketing & Sales Essentially an information activity – informing buyers and consumers about products and services (benefits, use, price etc.) 3
  • 4. Secondary Activities DescriptionSecondary Procurement All those activities concerned with receiving and storing externally sourced materials Human Resource Management All those activities concerned with receiving and storing externally sourced materials Technology Development All those activities associated with getting finished goods and services to buyers Infrastructure Essentially an information activity – informing buyers and consumers about products and services (benefits, use, price etc.) 4
  • 5. 5 This approach is used when organizations try to compete on costs & want to understand the sources of their cost advantage or disadvantage & what factors drive those costs Cost Advantage The firms that strive to create superior products or services use differentiation advantage approach Differentiation Advantage Value Chain – Approaches To Perform Analysis Competitive Advantages Types There are two different approaches on how to perform the analysis, which depend on what type of competitive advantage a company wants to create
  • 6. CostAdvantage Identify the firm’s primary and support activities o All the activities (from receiving and storing materials to marketing, selling and after sales support) that are undertaken to produce goods or services have to be clearly identified and separated from each other o This requires an adequate knowledge of company’s operations because value chain activities are not organized in the same way as the company itself Establish the relative importance of each activity in the total cost of the product o The total costs of producing a product or service must be broken down and assigned to each activity. Activity based costing is used to calculate costs for each process o Activities that are the major sources of cost or done inefficiently (when benchmarked against competitors) must be addressed first Step 1 Step 2 6
  • 7. 7 Step 3 Identify cost drivers for each activity o Only by understanding what factors drive the costs, managers can focus on improving them. o Costs for labor-intensive activities will be driven by work hours, work speed, wage rate, etc Step 4 Identify links between activities o Reduction of costs in one activity may lead to further cost reductions in subsequent activities. o Identifying the links between activities will lead to better understanding how cost improvements would affect he whole value chain Step 5 Identify opportunities for reducing costs o When the company knows its inefficient activities and cost drivers, it can plan on how to improve them o Too high wage rates can be dealt with by increasing production speed, outsourcing jobs to low wage countries or installing more automated processes CostAdvantage
  • 8. Differentiation Advantage After identifying all value chain activities, managers have to focus on those activities that contribute the most to creating customer value o Managers can use the following strategies to increase product differentiation and customer value: o Add more product features o Focus on customer service & responsiveness o Increase customization o Offer complementary products Usually, superior differentiation and customer value will be the result of many interrelated activities and strategies used. The best combination of them should be used to pursue sustainable differentiation advantage Identify the Best Sustainable Differentiation Step 3 Evaluate the Differentiation Strategies for Improving Customer Value Step 2 Identify the Customers’ Value- creating Activities Step 1 8
  • 9. Value Chain Analysis-3 Step Process 9 Evaluation & Planning Evaluate whether it is worth making changes, and then plan for action Activity Analysis Identify the activities you undertake to deliver your product or service Value Analysis For each activity thin through what you would do to add the greatest value for your customer
  • 10. Competitor’s Value Analysis Value Activity 1 Value Activity 2 Value Activity 3 Value Activity 4 Value Activity 5 Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 Competitor 8 10
  • 11. 11 It’s Time For a Coffee Break
  • 13. 0 10 20 30 40 50 60 70 0 10 20 30 40 50 Product 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Bubble Chart 13 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 14. Donut Pie Chart 40% 30% 20% 10% Product 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 14 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 15. Stock Chart 0 10 20 30 40 50 60 70 0 20 40 60 80 100 120 140 160 FY '14 FY '15 FY '16 FY '17 FY '18 Volume Open Low High Close Product 01 15 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 16. 0 10 20 30 40 50 60 70 80 Product 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Radar Chart 16 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 17. Scatter Chart 5 20 10 9 35 15 30 30 56 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% X-Values Y-Values Product 01 17 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 19. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Our Vision 19
  • 20. Our Team20 Anita Parker Web Designer Tom Torres CEO Robin Carter Manager This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Jasmin Smith EDITOR This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 21. About Us Target Audiences This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Values client This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Premium services This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Preferred by many This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 21
  • 22. Our Goal 01 02 03 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 22
  • 23. Comparison 12:51 MINUTES/DAY AVG.TIME SPENT ON TWITTER 645,750,000 USERS 500+ MILLION TWEETS EVERY DAY 18 MINUTES/DAY AVG.TIME SPENT ON FACEBOOK 1,230,000,000 USERS 350 MILLION PHOTOS UPLOADED EVERY DAY 23 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 24. Financial Deposits $423 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Net Income $345 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Revenue $234 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 24
  • 25. Dashboard Medium This slide is 100% editable. Adapt it to your needs and capture your audience's attention. High This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Low This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 25
  • 26. …Sergey Brin Quotes 26 Obviously everyone wants to be successful, but I want to be looked back on as being on as being very innovative ,very trusted and ethical and ultimately making a big difference in the world.
  • 27. Location Russia This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Australia This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Brazil This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Canada This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 27
  • 28. Puzzle This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01 02 03 04 28
  • 29. Target o This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. o This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. o This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. o This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. 29
  • 30. Circular This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 30
  • 31. Venn Text Here Text Here Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 31
  • 32. Mind Map This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 32
  • 33. Lego 04 03 02 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 33
  • 34. Silhouettes This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 34
  • 35. Hierarchy Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here 35 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 36. Bulb Or Idea 01 02 03 04 05 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 36
  • 37. Magnifying Glass This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Hare This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Hare This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Hare 37
  • 38. Address # street number, city, state Contact Numbers: 0123456789 Email Address: emailaddress@gmail.com Thank you 38