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.
VALUE CHAIN ANALYSISHelps Institution to determinewhich type competitiveadvantage to pursue and how to pursueit. Industry Value Chain Value Chain Analysis Components Organization’s internal Value chain
VALUE CHAIN ANALYSIS5 Competitive forces withinindustry; - Intensity of existingcompetitors - New competitors - Substitute of products and services - Bargaining power of suppliers and buyers
Value chainAnalysis and Methodology• The key to analyzing the value chainisunderstanding the activitieswithin the institution thatcreate a competitiveadvantage and thenmanagingthoseactivitiesbetterthanother institutions in the industry.
Value chainAnalysisand MethodologyValue chain analysis is thus a means forexamining internal processes andidentifying which activities are bestprovided by others
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.