The document provides an overview of value chain analysis. It defines value chain as the total activities a firm undertakes to deliver a product or service to customers, from procurement of raw materials through production and distribution to marketing and sales. These activities are categorized into primary activities like operations and distribution, and secondary activities like R&D and human resources. The goal of value chain analysis is to maximize value for customers at the lowest possible cost.

1. Strategic Management Presentation
Value Chain Analysis
Presented by :
Anmol Gupta

2. VALUE :
Value is the total amount that buyers
are willing to pay for a firms product.
Value chain tool is developed by Mr.
Michael Porter , Harvard Business
School.

3. VALUE CHAIN :
• Value chain is most crucial element in SM.
• It is what, what is the value that created of Org.
towards its product and services.
• Porter’s Value chain focuses on all activities
- to design
- to produce
- to market
- to deliver
- and support product & services

4. VALUE CHAIN : continue...
• Value chain is concentrating on the activities
started with the raw materials till the conversion
into final goods & services.
Activities are categorized into :
1. PRIMARY ACTIVITIES
2. SECONDARY ACTIVITIES

5. VALUE CHAIN : continue...
1. PRIMARY ACTIVITIES
Primary activities includes ( Operations, Distributions,
Sales etc. )
2. SECONDARY ACTIVITIES
Secondary activities includes ( R&D, Human Resource
etc. )

6. TYPES OF VALUE CHAIN
Value chain is of 3 types :
1. Manufacturing Based
2. Service Based
3. Both Manufacturing and service based

7. VALUE CHAIN ANALYSIS
• It is a chain of activities that a firm is operating in
order to deliver a valuable product or services to
the market.
• Value chain analysis look at every step a business
goes through. (from raw material to eventual end-
user.
• Goal of VCA is to deliver maximum value for least
possible total cost.

8. Value Chain Model : Fishbone diagram

9. FIRMS ACTIVITIES
PRIMARY ACTIVITIES : SUPPORT ACTIVITIES :
1. INBOUND LOGISTICS
2. OPERATIONS
3. OUTBOUND LOGISTICS
4. SALES & MARKETING
5. SERVICE SUPPORT
1. FIRMS INFRASTRUCTURE
2. HRM
3. TECH. DEVLOPMENT
4. PROCUREMENT

10. THANK YOU