2. WHY VALUE CHAIN ANALYSIS?
• Whyalot of company or institution failed to
produceelearning system?
– High costtechnology
– Poordesicions and intensity of competition
– Absence of appropriate business
strategiesespeciallymarketassessment of consumer demand.
• It is not justdoing business and sale the product and gain
more profit. The factsthatisalot of
competitorsinsidethisindustry. That’swhyweneed to learn
how to manage ourstrategy and to survive.
• Most are failed to deliver real value thatcouldearn a
sustainable and profitable return from the learners.
3. VALUE CHAIN ANALYSIS
Helps Institution to determinewhich
type competitiveadvantage to
pursue and how to pursueit.
Industry Value Chain
Value Chain Analysis
Components
Organization’s internal
Value chain
4. VALUE CHAIN ANALYSIS
5 Competitive forces withinindustry;
- Intensity of existingcompetitors
- New competitors
- Substitute of products and services
- Bargaining power of suppliers and buyers
6. Value chainAnalysis and Methodology
• The key to analyzing the value
chainisunderstanding the activitieswithin the
institution thatcreate a competitiveadvantage
and
thenmanagingthoseactivitiesbetterthanother
institutions in the industry.
7. Value chainAnalysis
and Methodology
Value chain analysis is thus a means for
examining internal processes and
identifying which activities are best
provided by others
8. Conclusion
• Value cainanalysisis a frameworkthatcanprovide a number of benefits to
management of online learningorganizations. Thidanalysiscan help managers to
identify linkages between value activitieswithin the organization and to think in
term of processratherthanfunction or department.
• Alsoidentifypotencial for strategic alliances.
• Identification of cost drivers and help manager focus on costreduction and
manage sot problem
• The value chainframeworkallows online learningorganizations to break down the
chainfrombasic infrastructure and support, to content development, to student
support and service intostrategically relevant activities to understandbehaviour of
costs and the sources of differenciation.
