Value Add Chain
Analysis
Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize which activities are the most valuable to your company and which ones could be improved to provide competitive advantage.
One of the goals of value chain analysis is to ensure the product is placed in the customers' hands as seamlessly as possible. The final result of a value chain analysis should be a more competitive, efficient business.
Why Do You Need Value Chain Analysis
As competition increases for high-quality products, low costs and excellent customer service, businesses must continually assess the value they create. One of the most valuable tools, the value chain analysis, breaks down each process of a business and creates opportunities for innovation.
How We Use The Value Chain Tool For Your Business
There are two different approaches on how we carry out the analysis, which depend on what type of competitive advantage your company wants to create. These include:
- The Cost Advantage – This approach is used when your company is trying to compete on costs and you want to understand the sources of your cost advantage or disadvantage as well as the factors drive those costs; and
- The Differentiation Advantage – This approach is used if your company is striving to create superior products or services.
