Follow Value Chain Analysis Process Steps And Approaches to generate the superior value for your customers. Every now and then, a firm has to conduct a value chain analysis to find primary and support activities which add value to their products. Use value chain analysis process steps and approaches PPT presentation to find ways to reduce costs or increase differentiation. This ready-to-use value chain analysis PPT example includes topics such as value chain analysis framework, primary activities, support activities, competitive advantage type, cost and differentiation advantage, 3 step value chain analysis process, and more. Incorporate Porter’s value chain framework to explain how business receives raw materials and adds value to them through various processes to bring out the best final product for the consumers. Make this extensive process simple and easy with value chain analysis process steps and procedures. Download content-ready value chain analysis process steps and approaches presentation to maximize the value for the customers. Create a firm employee base with our Value Chain Analysis Process Steps And Approaches PowerPoint Presentation Slides. Make them feel like a big family.
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
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50
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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”.
19. Our Team19
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21. 21
About
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23. Financial
$659 Million
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$340 Million
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24. Comparison24
$
8,02M
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0,12M
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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)
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Dashboard
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27. Location27
North America40%
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South America20%
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29. Puzzle29
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