Value chain analysis examines how a business creates customer value by assessing its internal activities from input to product delivery and after-sales service. It allows firms to identify strengths and weaknesses through internal resources while integrating SWOT analysis to evaluate both environmental opportunities and threats. The document also discusses various perspectives for internal analysis, including past performance comparisons, industry benchmarks, and distinctive competencies across functional areas throughout different stages of industry evolution.

1. What is Value Chain Analysis?
• Focuses on how a business creates customer value
by examining contributions of different internal
activities to that value
• Divides a business into a set of activities within the
business
– Starts with inputs a firm receives
– Finishes with firm’s products or services and after-sales
service to customers
• Allows for better identification of a firm’s strengths
and weaknesses since the business is viewed as a
process

2. SWOT Analysis
Based on assumption an effective strategy derives from a sound
“fit” between a firm’s internal resources and its external
situation
Numerous environmental
opportunities
A major favorable situation in
a firm’s environment
Major environmental threats
A major unfavorable situation in a
firm’s environment
Substantial internal strengths
A resource advantage relative
to competitors and the needs of
markets firm serves
Critical internal weaknesses
A limitation or deficiency in one or
more resources or competencies
relative to competitors

3. Internal Analysis: Making Meaningful
Comparisons
Perspectives
to use
1. Comparison with past
performance
2. Stages of
industry
evolution
3. Benchmarking –
comparison with competitors
4. Comparison with
success factors in
industry

4. Sources of Distinctive Competence at Different
Stages of Industry Evolution
Functional
Area
Introduction Growth Maturity Decline
Marketing Resources/skills
to create
widespread
awareness and
find acceptance
from customers ;
advantageous
access to
distribution
Ability to
establish brand
recognition,
find niche,
reduce price,
solidify strong
distribution
relations, and
develop new
channels
Skills in
aggressively
promoting
products to new
markets and
holding existing
markets; pricing
flexibility; skills
in differentiating
products and
holding
customer loyalty
Cost effective
means of
efficient access
to selected
channels and
markets; strong
customer loyalty
or dependence;
strong company
image

5. iPOD: 科技行銷的經典案例

6. (contd.)
Functional
Area
Introduction Growth Maturity Decline
Production
operations
Ability to
expand
capacity
effectively, limit
number of
designs,
develop
standards
Ability to add
product
variants,
centralize
production, or
otherwise lower
costs; ability to
improve product
quality;
seasonal
subcontracting
capacity
Ability to
improve product
and reduce
costs; ability to
share or reduce
capacity;
advantageous
supplier
relationships;
subcontracting
Ability to prune
product line;
cost advantage
in production,
location or
distribution;
simplified
inventory
control;
subcontracting
or long
production runs

7. (contd.)
Functional
Area
Introduction Growth Maturity Decline
Finance Resources to
support high net
cash overflow
and initial
losses; ability to
use leverage
effectively
Ability to finance
rapid expansion,
to have net cash
outflows but
increasing
profits;
resources to
support product
improvements
Ability to
generate and
redistribute
increasing net
cash inflows;
effective cost
control systems
Ability to reuse
or liquidate
unneeded
equipment;
advantage in
cost of facilities;
control system
accuracy;
streamlined
management
control

8. (contd.)
Functional
Area
Introduction Growth Maturity Decline
Personnel Flexibility in
staffing and
training new
management;
existence of
employees with
key skills in new
products or
markets
Existence of an
ability to add
skilled
personnel;
motivated and
loyal workforce
Ability to cost
effectively,
reduce
workforce,
increase
efficiency
Capacity to
reduce and
reallocate
personnel

9. (contd.)
Functional
Area
Introduction Growth Maturity Decline
Engineering and
R&D
Ability to make
engineering
changes, have
technical bugs in
product and
process
resolved
Skill in quality
and new feature
development;
ability to start
developing
successor
product
Ability to reduce
costs, develop
variants,
differentiate
products
Ability to support
other grown
areas or to apply
product to
unique customer
needs
Key functional
area and
strategy focus
Engineering:
market
penetration
Sales: consumer
loyalty; market
share
Production
efficiency:
successor
products
Finance:
maximum
investment
recovery