2. Value Chain Analysis
A value chain is a linked set of value-creating
activities beginning with basic raw material
coming from suppliers, moving on to a series
of value-added activities involved in producing
and marketing a product or service and ending
with distributors getting the final goods into
the hands of the ultimate customer
4. A firm has an area of expertise where its primary
activity lies in industry. An company’s ‘Centre
of gravity’ is that part of the chain,
: which is most important to the company
:where its greatest expertise and capabilities
exists
:
5. Corporate value chain analysis
Different products --------- Different Value chains
Steps in corporate value chain analysis
1. Examine each product line’s value chain to
identify strengths and weaknesses
2. Examine the linkages within each product line
3. Examine the potential synergies among the
value chain of different product lines or business
units.
