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Value Chain Analysis
Process Steps And
Approaches
Your Company Name
Value Chain Analysis Framework2
PrimaryActivitiesSupportActivities
Firm Infrastructure
Human resource management
Technology Development
Procurement
Management, Finance, Legal, Planning
Professional development, Employee relations, Performance
appraisals, Recruiting, Competitive wages, Training programs
Integrated supply chain system, Real-time sales information
Real-time inventory, Communication with suppliers, Purchase
supplies and materials
Inbound Logistics
▪ Real-time inbound
inventory data
▪ Location of
distribution
facilities
▪ Trucks
▪ Material Handling
▪ Warehouse
Inbound Logistics
▪ Standardized
model
▪ Access to real-
time sales &
inventory system
Inbound Logistics
▪ Order processing
▪ Full delivery trucks
Inbound Logistics
▪ Pricing
▪ Communication
▪ Promotion
▪ Product based on
community needs
▪ Low prices
Inbound Logistics
▪ Delivery
▪ Installation
▪ Repair
▪ Greeters
▪ Customer service
focus
3PrimaryActivityDescription
Service
All those activities
associated with
maintaining product
performance after the
product has been sold
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
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.)
Primary Activities
4SecondaryDescription
Procurement
All those activities concerned
with receiving and storing
externally sourced materials
Human Resource
Management
The manufacture of products
and services – the way in which
resource inputs (e.g. materials)
are converted to outputs (e.g.
products)
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.)
Secondary Activities
Value Chain – Approaches To Perform Analysis5
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
Differentiation Advantage
The firms that strive to create superior
products or services use differentiation
advantage approach
Cost Advantage
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
Step
1
Step
2
Identify the firm’s primary and
support activities
▪ 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
▪ 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
▪ 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
▪ Activities that are the major sources of cost or done
inefficiently (when benchmarked against competitors)
must be addressed first
Cost Advantage
6
7
Identify cost drivers for each
activity
▪ Only by understanding what factors drive the
costs, managers can focus on improving them.
▪ Costs for labor-intensive activities will be driven
by work hours, work speed, wage rate, etc
Identify links between activities
▪ Reduction of costs in one activity may lead to further
cost reductions in subsequent activities.
▪ Identifying the links between activities will lead to
better understanding how cost improvements would
affect he whole value chain
Identify opportunities for reducing
costs
▪ When the company knows its inefficient activities and
cost drivers, it can plan on how to improve them
▪ Too high wage rates can be dealt with by increasing
production speed, outsourcing jobs to low wage
countries or installing more automated processes
Step
3
Step
4
Step
5
Differentiation Advantage8
After identifying all value chain activities,
managers have to focus on those
activities that contribute the most to
creating customer value
Managers can use the following strategies to increase
product differentiation and customer value:
▪ Add more product features
▪ Focus on customer service & responsiveness
▪ Increase customization
▪ 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
Customers’ Value-
creating Activities
Step 1
Identify the Best
Sustainable
Differentiation
Step 3
Evaluate the
Differentiation
Strategies for
Improving Customer
Value
Step 2
Value Chain
Analysis – 3
Step Process
9
Identify the activities you undertake to
deliver your product or service
Activity Analysis
For each activity thin through what you would
do to add the greatest value for your customer
Value Analysis
Evaluate whether it is worth making
changes, and then plan for action
Evaluation & Planning
Competitor’s Value Analysis10
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
Coffee Break
11
12
Chart &
Graphs
Line chart13
0
10
20
30
40
50
60
70
80
FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18
Salesinpercentage(%)
Financial years
▪ Product 01 ▪ Product 02
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
90
100
Jan Feb Mar Apr May Jun
Salesinpercentage(%)
Financial year in 2018
98%
Column
Chart
▪ Product 01
▪ Product 02
This graph/chart is linked to excel, and changes automatically based on data.
Just left click on it and select “Edit Data”.
14
Area Chart15
100%
0
10
20
30
40
50
60
70
80
90
100
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18
SalesInPercentage(%)
▪ Product 01 ▪ Product 02
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
16
Radar
Chart
0
5
10
15
20
25
30
35
03-05-2018
05-05-2018
08-05-2018
12-04-2018
15-05-2018
17-05-2018
▪ Product 01
▪ Product 02
This graph/chart is linked to excel, and changes automatically based on data.
Just left click on it and select “Edit Data”.
Combo Chart17
0
1
2
3
4
5
6
7
8
9
10
0
10
20
30
40
50
60
70
80
90
100
FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18
GrowthRate(%)
MarketSize(RMB100
Million)
▪ Product 01 ▪ Product 02 ▪ Product 03
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
18
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Financial
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85%
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Comparison24
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In order to inspire people, that’s
going to have to come from
somewhere deep inside of you.
If something is important enough, even
if the odds are against you, you should
still do it..
Jeff Weiner
(CEO LinkedIn)
Elon Musk
(Engineer)
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Value Chain Analysis Process Steps and Approaches PowerPoint Presentation Slides

  • 1. Value Chain Analysis Process Steps And Approaches Your Company Name
  • 2. Value Chain Analysis Framework2 PrimaryActivitiesSupportActivities Firm Infrastructure Human resource management Technology Development Procurement Management, Finance, Legal, Planning Professional development, Employee relations, Performance appraisals, Recruiting, Competitive wages, Training programs Integrated supply chain system, Real-time sales information Real-time inventory, Communication with suppliers, Purchase supplies and materials Inbound Logistics ▪ Real-time inbound inventory data ▪ Location of distribution facilities ▪ Trucks ▪ Material Handling ▪ Warehouse Inbound Logistics ▪ Standardized model ▪ Access to real- time sales & inventory system Inbound Logistics ▪ Order processing ▪ Full delivery trucks Inbound Logistics ▪ Pricing ▪ Communication ▪ Promotion ▪ Product based on community needs ▪ Low prices Inbound Logistics ▪ Delivery ▪ Installation ▪ Repair ▪ Greeters ▪ Customer service focus
  • 3. 3PrimaryActivityDescription Service All those activities associated with maintaining product performance after the product has been sold 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 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.) Primary Activities
  • 4. 4SecondaryDescription Procurement All those activities concerned with receiving and storing externally sourced materials Human Resource Management The manufacture of products and services – the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) 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.) Secondary Activities
  • 5. Value Chain – Approaches To Perform Analysis5 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 Differentiation Advantage The firms that strive to create superior products or services use differentiation advantage approach Cost Advantage 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
  • 6. Step 1 Step 2 Identify the firm’s primary and support activities ▪ 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 ▪ 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 ▪ 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 ▪ Activities that are the major sources of cost or done inefficiently (when benchmarked against competitors) must be addressed first Cost Advantage 6
  • 7. 7 Identify cost drivers for each activity ▪ Only by understanding what factors drive the costs, managers can focus on improving them. ▪ Costs for labor-intensive activities will be driven by work hours, work speed, wage rate, etc Identify links between activities ▪ Reduction of costs in one activity may lead to further cost reductions in subsequent activities. ▪ Identifying the links between activities will lead to better understanding how cost improvements would affect he whole value chain Identify opportunities for reducing costs ▪ When the company knows its inefficient activities and cost drivers, it can plan on how to improve them ▪ Too high wage rates can be dealt with by increasing production speed, outsourcing jobs to low wage countries or installing more automated processes Step 3 Step 4 Step 5
  • 8. Differentiation Advantage8 After identifying all value chain activities, managers have to focus on those activities that contribute the most to creating customer value Managers can use the following strategies to increase product differentiation and customer value: ▪ Add more product features ▪ Focus on customer service & responsiveness ▪ Increase customization ▪ 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 Customers’ Value- creating Activities Step 1 Identify the Best Sustainable Differentiation Step 3 Evaluate the Differentiation Strategies for Improving Customer Value Step 2
  • 9. Value Chain Analysis – 3 Step Process 9 Identify the activities you undertake to deliver your product or service Activity Analysis For each activity thin through what you would do to add the greatest value for your customer Value Analysis Evaluate whether it is worth making changes, and then plan for action Evaluation & Planning
  • 10. Competitor’s Value Analysis10 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
  • 13. Line chart13 0 10 20 30 40 50 60 70 80 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18 Salesinpercentage(%) Financial years ▪ Product 01 ▪ Product 02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 14. 0 10 20 30 40 50 60 70 80 90 100 Jan Feb Mar Apr May Jun Salesinpercentage(%) Financial year in 2018 98% Column Chart ▪ Product 01 ▪ Product 02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 14
  • 15. Area Chart15 100% 0 10 20 30 40 50 60 70 80 90 100 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 SalesInPercentage(%) ▪ Product 01 ▪ Product 02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 16. 16 Radar Chart 0 5 10 15 20 25 30 35 03-05-2018 05-05-2018 08-05-2018 12-04-2018 15-05-2018 17-05-2018 ▪ Product 01 ▪ Product 02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 17. Combo Chart17 0 1 2 3 4 5 6 7 8 9 10 0 10 20 30 40 50 60 70 80 90 100 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18 GrowthRate(%) MarketSize(RMB100 Million) ▪ Product 01 ▪ Product 02 ▪ Product 03 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 19. Our Team19 Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 20. 20 Vision This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mission This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Goals This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Our Mission
  • 21. 21 About Us This is a representative image, and should be replaced by your own image. Just right click and replace image.
  • 22. Our goal22 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. 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02
  • 23. Financial $659 Million This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 85% $456 Million This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 75% $340 Million This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 85% 23
  • 24. Comparison24 $ 8,02M This slide is 100% editable. Adapt it to your needs and capture your audience's attention. $ $ $ $ $ 0,12M This slide is 100% editable. Adapt it to your needs and capture your audience's attention. $ $ $ $
  • 25. 25 In order to inspire people, that’s going to have to come from somewhere deep inside of you. If something is important enough, even if the odds are against you, you should still do it.. Jeff Weiner (CEO LinkedIn) Elon Musk (Engineer)
  • 26. 26 Dashboard 50 100 0 Low This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 50 100 0 Medium This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 50 100 0 High This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 27. Location27 North America40% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. South America20% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Australia50% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Asia80% This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 28. Target This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 28
  • 29. Puzzle29 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here 04 01 03 02
  • 30. Circular30 Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 31. Venn31 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. Mind Map32 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01
  • 33. Lego33 01 02 03 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.
  • 34. Silhouettes This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Silhouettes01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Silhouettes02 34
  • 36. Bulb And Idea36 ▪ 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.
  • 37. Magnifying37 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 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 05 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 06