Description
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
VALUE CHAIN ANALYSIS
Strategic Cost Management Tool
1 VCA © Baba
4
BUSINESS LEVEL STRATEGY ANALYSIS
The Positioning Approach.
- Porter’s 5 Forces.
- Value Chain Analysis.
- The Generic Strategies.
2 VCA © Baba
The Positioning Approach
eThe oldest approach to military
strategy.
eThe newest of the three
prescriptive approaches to strategy
.
eFocuses on how firms in a given
context differ in product market
positions compared to the
competition.
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Premises of The Positioning Approach
eStrategy follows structure.
eLooks at the groups of competitors
in an industry.
eRelies more heavily on calculation
than the design or planning schools.
ePlaces even more emphasis on the
role of strategic planners.
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Porter’s Five Forces Analysis
Breaking Apart Industry-Level
Competition
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Porter’s Five Forces Analysis
Threat of
Entry
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The 6 Barriers of Entry
·Economies of Scale.
Product Differentiation.
Capital Requirements.
¬Cost Disadvantages Independent of Size.
+Access to Distribution Channels.
´Government Policy.
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Porter’s Five Forces Analysis
Power of
Buyers
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Buyer Power Determinants
¯ Bargaining Leverage.
UBuyer Concentration
UBuyer Volume.
UBuyer Switching Costs.
UBuyer Information.
UAbility to Integrate Backward.
USubstitute Products.
UPull-Through.
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Buyer Power Determinants
¯ Price Sensitivity.
UPrice/Total Purchases
UProduct Differences.
UBrand Identity.
UImpact on Quality/Performance.
UBuyer Profits.
UDecision-Maker’s Incentives.
90
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Porter’s Five Forces Analysis
Power
of
Suppliers
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Supplier Power Determinants
¯ Differentiation of Inputs.
¯ Switching Costs of Suppliers.
¯ Presence of Substitute Products.
¯ Supplier Concentration.
¯ Importance of Volume to Supplier.
¯ Cost Relative to Total Purchases in
the Industry.
¯ Impact of Inputs on Cost or
Differentiation.
90
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Porter’s Five Forces Analysis
Power
of
Substitutes
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Power of Substitutes
¯ Relative Price Performance of
Substitute.
¯ Switching Costs.
¯ Buyer Propensity to Substitute.
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Porter’s Five Forces Analysis
Competitive
Rivalry
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Determinants of Rivalry
Competition is
Everything!!!
¯ Industry Growth.
¯ Fixed Costs/Value Added.
¯ Intermittent Overcapacity.
¯ Product Differences.
¯ Brand Identity.
¯ Switching Costs.
¯ Concentration and Balance.
¯ Informational Complexity.
¯ Diversity of Competitors.
¯ Corporate Stakes.
¯ Exit Barriers.
16 VCA © Baba
Creating Families of
Strategies
1. Locating the core business.
2. Distinguishing the core business.
3. Elaborating the core business.
4. Extending the core business.
5. Reconceiving the core business.
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Creating Families of Strategies
1 . Locating the core business.
2 . Distinguishing the core business.
3 . Elaborating the core business.
4 . Extending the core business.
5 . Reconceiving the core business.
The Core Business is reflected in the
Choice of Generic Strategies
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Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
Figure 4
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Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
2. Differentiation
Figure 4
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Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
2. Differentiation
3A. Cost Focus
Figure 4
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Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
2. Differentiation
3A. Cost Focus
Figure 4
3B. Differentiation
Focus
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Strategies of Differentiation
v Price Differentiation.
v Image Differentiation.
v Support Differentiation.
v Quality Differentiation.
v Design Differentiation.
v Undifferentiation.
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Strategies of Scope
vUnsegmentation.
vSegmentation.
vNiche.
vCustomizing.
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Elaborating the Core Business
vPenetration Strategies.
vMarket Development Strategies.
vGeographic Expansion Strategies.
vProduct Development Strategies.
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Existing Product New Product
Existing
Market
New
Market
Penetration
Strategies
Market
Development
Strategies
Product
Development
Strategies
Diversification
Strategies
Ways to Elaborate a Given
Business
Figure 5 101
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What is value chain analysis?
? VCA (Value Chain Analysis) is a tool to measure importance of
customer’s perceived value.
? By enabling companies to determine strategic advantages &
disadvantages of their activities & VC processes in the market VCA
becomes essential for assessing competitive advantage
? Used to identify sources of competitive advantage
? Specifically:
? Opportunities to secure cost advantages
? Opportunities to create product/service differentiation
? Includes the value-creating activities of all industry participants
? VCA encouraged exploiting the ignored potential of vertical
synergies
? Porter offered VCA as a way to implement competitive strategy
? Used to identify sources of competitive advantage
? Specifically:
? Opportunities to secure cost advantages
? Opportunities to create product/service differentiation
? Includes the value-creating activities of all industry participants
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Michael Porter
? VCA popularized by Porter’s 1985 book, Competitive
Advantage
? An approach to ?close the strategic gap? between internal
capabilities and external opportunities.
? 1985 – Michael Porter introduces value chain analysis as a
technique to
? Evaluate the internal and external business processes as
a competitive
advantage vs. standard financial metrics (P&L,
Balance, Cash Flow)
? The value paid by the Customer will be greater than the
cost of all value
? Added activities resulting in a profit.
? Cost advantages and differentiation opportunities are
analyzed
throughout the value chain to become more competitive.
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THE VALUE CHAIN
? Can be used to examine the various activities of the firm and how they
interact in order to provide a source of competitive advantage by:
- Performing these activities better
Or
- At a lower cost than the competitors.
Definition
Interlinked value-adding activities that convert inputs into outputs which,
in turn, add to the bottom line and help create competitive advantage.
? What Does Value Chain Mean?
A high-level model of how businesses receive raw materials as input,
add value to the raw materials through various processes, and sell
finished products to customers.
? Value-chain analysis looks at every step a business goes through, from
raw materials to the eventual end-user. The goal is to deliver maximum
value for the least possible total cost.
? Value-chain analysis looks at every step a business goes through, from
raw materials to the eventual end-user. The goal is to deliver maximum
value for the least possible total cost
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• Identify which resources and capabilities add
value
• Goal: add as much value as cheaply as
possible
• To be a source of competitive advantage, a
firm must either perform an activity:
• In a manner that is superior to other firms
• That other firms cannot perform
Value Chain Analysis
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What is the value chain?
? Porter’s definition includes all activities
to –
? design,
? produce,
? market,
? deliver, and
? support the product/service.
? Two categories:
? Primary Activities (operations, distribution,
sales)
? Support Activities (R&D, Human
Resources)
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Value Chain Activities, cont.
? Most value chain activities are
interlinked, and dependant upon the
others
? Competitive advantage can be
achieved by single activities
? The best competitive advantages are
based upon complex linkages
? Value Chain Analysis pinpoints these
opportunities
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Strengths and Advantages
?Porter challenged conventional
management theory
?VCA = superior method of exploiting
sources of competitive advantage
?Encourages internal/external synergies
(strategic fits)
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? Linking Value Chain Analysis to
Competitive Advantage
? What activities a business undertakes is
directly linked to achieving competitive
advantage. For example, a business which
wishes to outperform its competitors through
differentiating itself through higher quality
will have to perform its value chain activities
better than the opposition. By contrast, a
strategy based on seeking cost leadership
will require a reduction in the costs
associated with the value chain activities, or a
reduction in the total amount of resources
used
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Value Chain Model
from Michael E. Porter’s Competitive
Advantage
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Firm Infrastructure (General Management)
Human Resource Management
Technology Development
Procurement
Inbound
Logistics
Ops.
Outbound
Logistics
Sales &
Marketing
Service and
Support
PRIMARY ACTIVITIES
SUPPORT
ACTIVITIES
Primary
Activity
Description
Inbound
logistics
All those activities concerned with receiving
and storing externally sourced materials
Concerned with receiving, storing, distributing
inputs (e.g. Handling of raw materials, warehousing,
inventory
control)
Operations
The manufacture of products and services -
the way in which resource inputs (e.g.
materials) are converted to outputs (e.g.
products) Comprise the transformation of the inputs into
the final product form (e.g. Production, assembly, and
packaging)
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Outbound
logistics
All those activities associated with getting
finished goods and services to buyers Involve the
collecting, storing, and distributing the product to the buyers
(e.g. Processing of orders, warehousing of finished goods, and
delivery)
Marketing
and sales
Essentially an information activity - informing
buyers and consumers about products and
services (benefits, use, price etc.) How buyers can
be convinced to purchase the product (e.g. Advertising,
promotion, distribution)
Service All those activities associated with
Maintaining product performance after the
product has been sold Involves how to maintain the
value of the product after it is purchased (e.g. Installation, repair,
maintenance, and training)
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Secondary
Activity
Description
Procurement This concerns how resources are acquired for a
business (e.g. sourcing and negotiating with materials
suppliers,Concerned with the tasks of purchasing inputs such
as
raw materials, equipment, and even labor & handling of raw
materials, warehousing, inventory control (e.g. with receiving,
storing, distributing inputs)
Human
Resource
Management
Those activities concerned with recruiting, developing,
motivating and rewarding the workforce of a business –
Involved in recruiting, hiring, training, development and compensation.
Technology
Development
Activities concerned with managing information
processing and the development and protection of
"knowledge" in a business These activities are intended to
improve the product and the process, can occur in many parts of the
firm
Infrastructure
Concerned with a wide range of support systems and
functions such as finance, planning, quality control and
general senior management . The activities which are not
specific to any activity area such as general management, planning,
finance, and accounting are categorized under firm infrastructure.
38 VCA © Baba
Steps in Value Chain Analysis
Value chain analysis can be broken down into
a three sequential steps:
(1) Break down a market/organisation into its
key activities under each of the major headings
in the model;
(2) Assess the potential for adding value via
cost advantage or differentiation, or identify
current activities where a business appears to
be at a competitive disadvantage;
(3) Determine strategies built around focusing
on activities where competitive advantage can
be sustained
39 VCA © Baba
USES OF VCA
? The sources of the competitive advantage of a firm
can be seen from its discrete activities and how
they interact with one another.
? The value chain is a tool for systematically
examining the activities of a firm and how they
interact with one another and affect each other’s
cost and performance.
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Goal of Value Chain
? Driven by customer perceptions
? Increase margins
? Focus on value processess
? Distinctive capabilities
? Cost advantages
? Some examples
? Southwest Airlines
? Intel Corporation
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VALUE
? The value is the total amount (i.E. Total
revenue) that buyers are willing to pay for a
firm’s products.
? The difference between the total value (or
revenue) and the total cost of performing all of
the firm’s activities provides the margin
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Value Chain Analysis-process
? Document the activities
? Understand the cost and margins at
each step.
? Use Activity Based Costing
? Map the value chain to the industry
value chain
? Look for core competencies
? Map the cost structure
? Note that external values drive cost
advantages
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VALUE ACTIVITIES
? Those activities that are distinct both physically and
technologically.
? Some activities are more vital than others depending upon the
industry.
? For instance, marketing activities would be more vital in a very
competitive consumer goods industry than in a telephone
monopoly.
? Some activities are direct in the sense that they are directly
involved in creating value for the buyer.
? Some activities are indirect and are involved only in making it
possible to perform the direct activities on a continuing basis
(e.g. Maintenance, scheduling, operation of facilities, record
keeping).
? Some activities are primarily involved in quality assurance and
are involved mainly in ensuring the quality of other activities
(e.g. Monitoring, inspecting, testing, etc.) .
? Every activity that is done by a firm needs to be captured in a
primary or support activity.
? The activities with discrete technologies and economics should
be isolated.
? The value labels are arbitrary and they should be chosen in
order to provide the best insight into the business.
?
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VALUE ACTIVITIES contd.
? It is advisable to assign the value activities to categories
that best represent their contribution to a firm’s competitive
advantage.
? An activity can be separated from other activities if it has
any of the following characteristics;
a) has a different economics
compared to the others
B) has a high potential impact of
differentiation and,
c) represents a significant or
growing proportion of the cost
of production or operation.
? Some activities should be combined if they are not
important to competitive advantage of the firm or if their
economics are similar to the other activities.
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D. Label Non-value Added Activities
Non-value added activity: An activity that does not
contribute to customer value or to the organization's
needs. The designation "non-value added" reflects the
belief that the activity can be redesigned, reduced, or
eliminated without reducing the quantity,
responsiveness, or quality of the output required by
the customer or the organization. (Source: CAM-I
Glossary)
Use a different color dot to designate non-value added
activities on the activity Post-Its on the activity by
organization map.
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Summary of Steps
A. Identify the key activities of the process.
B. Sequence activities on an activity by
organization
map.
C. Identify the cost, time, and quality of
each activity.
D. Label non-value added activities
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ANALYZING THE CHAIN
? Cover the entire cost structure of the
company.
? Be sure to include the sub-contracted
or outsourced portions
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LINKAGES WITHIN THE VALUE CHAIN
? Not just a compilation of activities that are
independent of each other;
? Instead, it is a system of activities that are
interdependent because they are related by
their linkages.
? Through the linkages, the performance of
one activity affects the cost or performance
of another. These linkages between the
activities suggest that the cost advantage or
the differentiation of a firm would depend
not just on the cost reduction or
performance improvement of an individual
activity.
? Do not just look at each activity
independently
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LINKAGES WITHIN
THE VALUE CHAIN
? The linkages between the activities can be
identified by searching for ways in which
each value activity affects or is affected by
others.
? Optimization and coordination between the
various activities of the firm can be achieved
by exploiting these linkages.
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VERTICAL LINKAGES
? Linkages can also exist outside the firm; for
instance there is a linkage between a firm’s
chain and the value chain of its suppliers
and channels.
? E.G. The activities of the raw materials
suppliers affect the activities of the firm.
Similarly, the activities of the distributor also
affect the firm.
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Strengths and Advantages
? VCA & SWOT
? Tool for understanding:
? Strengths
? Weaknesses
? Competitive positioning
? Illustrates how competitive advantage
can be achieved & sustained
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SUPPLIER F I R M
CHANNEL /
BUYER
VALUE SYSTEM:
LINKAGES OF ACTIVITIES
BETWEEN FIRMS
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VCA TACTCAL ANALYSIS
? What value chain segments provide opportunity to extract
additional profit?
? What opportunities exist for portfolio expansion (or
contraction)?
? What market opportunities exist for existing technology in
new and attractive markets?
? Can additional value be extracted by meeting unmet needs
along the value chain?
? What are the critical success factors for each technology and
market?
? What are the value propositions of competing and emerging
technology?
? Who are the emerging competitors in each technology and
market segment?
? •How does an organization maintain a competitive
advantage through the Customer Experience?
54 VCA © Baba
VERTICAL LINKAGES
? These linkages can provide opportunities for the firm to
enhance its competitive advantage.
? The value chain of a firm is a part of the value system,
which is the larger stream of activities from suppliers to
buyers
? The product of a firm represents a purchased input to the
buyer’s chain.
? Differentiation can result from how a firm’s value chain
relates to the value chain of its buyer.
? Value is created when a firm creates competitive
advantage for its buyer.
? A firm can also enter into coalitions with independent firms
to achieve benefits from the linkages among their various
value chains.
? Examples of such coalitions are technology licenses and
joint ventures.
? Because of the interactions between them, the suppliers
and even the channels affect a company’s value chain.
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Too Simplistic
? Porter’s VCA is a straightforward theory, but
much more difficult to apply in practice.
? Major Factor – Expensive $$$$$$$$$$$$$$ for
? Customer Research
? Competitive Analysis
? Industry Structure Analysis
? Data is not easily available
? Accounting systems are not set up to gather the
correct information to make VCA data gathering easy.
? Solution: Activity Based Accounting (ABC) & ABM.
56 VCA © Baba
Applying VCA
? Step 1: Define firm’s strategic business
units
? Draw boundaries around business
segments
? Different segments
? Different competitive advantages
? Different strategies
? Step 2: Identify critical value-creating
activities
? Different economic structures
? Contribute large/growing % of total costs
? Contribute to product/service differentiation
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Step Three
? Step 3: Conduct internal cost analysis
? Internal
? Identify cost drivers
? Functional
? Executional
? Identify existing VCA
? Explore strategic cost management
? External
? Benchmark competition
? Revamp cost structure & secure low cost
advantage
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Step Four
? Conduct an Internal Differentiation Analysis
? Identify value creating activities and cost drivers.
? Meld customer knowledge with appropriate strategy.
? Engage in customer dialogue (surveys, focus groups, etc.)
? Find out how to provide more value to the customer.
? Determine differentiation strategy.
? Product or Service Attributes
? Channel Management
? Customer Support
? Pre- and Post-Sale Support
? Branding
? Price
? KEY: Choose best strategy to meld companies
core competencies with customer demands for
value.
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Step Five
¤Industry Profit Pool
ODefine parameters of the Industry Profit Pool
¤Who or what is considered a market or a competitor.
(Don’t forget crossovers and migrating companies.)
OEstimate the total size of the Industry Profit
Pool
¤Use government resources and accounting
information.
OEstimate Distribution of the Profit Pool
¤Who has what amount of the market share?
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Step Six: Vertical Linkage
Analysis
? Allows analyst to determine how to
reposition the firm in the ?deep end? of the
industry profit pool—and stay there.
? Most difficult step, since vertical linkages
are less tangible.
? First, analyze the industry using Porter’s
Five Forces analysis.
? Second, determine the cost drivers and
core competencies driving each competitor.
? Core competency = capabilities, skills, and
technologies that create low cost or
differentiation customer value.
61 VCA © Baba
Step Six, cont.
SWOT
? Third, evaluate the firm’s existing core
competencies.
? Determine opportunities to acquire or
strengthen related competencies
through vertical linkages with
suppliers, buyers, etc.
? Avoid the temptation to utilize a mixed
strategy (low-cost and differentiation)
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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
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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
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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
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Step Seven: Iteration
? Repeat steps one through six periodically
to proactively manage industry change.
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Using the Value Chain
? Helps you to stay out of the ?No Profit
Zone?
? Presents opportunities for integration
? Aligns spending with value processes
? Provides for reconfiguration of the value
chain
? outsourcing
? off-shoring
? co-location with customers or suppliers
? redesign for efficiency
? Involves chain partners: customers &
suppliers
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Value Chain and the TBC
Triangle
? Technical:
? Increases knowledge of no profit zones
? Increases knowledge of forward and/or backward
integration opportunities
? Identifies value processes
? Identifies win-win alliance opportunities
? Behavioral:
? Focus shifts to ?the customer?
? Focus shifts from conflict to partnering with
customers & suppliers
? Cultural
? Creates externally focused mindset
? Generates information sharing environment with
respect for confidentiality
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Competitive scope and business
definition
? Define the business unit in which the
value chain would be optimal for the
firm
E.G. Export sales division vs. Local sales
division
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Applying the value chain to an
industry
? The value chains of the different firms
within an industry vary from one
another.
? In fact, the differences in the value
chains among the different industry
players provide the source of
competitive advantages between
these players.
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Applying the value chain to an
industry
? Since the application of the value chain
analysis to an industry will likely blur or hide
these sources of competitive advantage, dr.
Porter therefore suggests that:
The business unit is the correct level to
construct a value chain
and
The application to an entire sector or
industry is not recommended.
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Applying the value chain to an
industry
? Nevertheless, value chain analysis on an
industry level has been performed in
numerous industry studies all over the
world.
? The pearl 2 project has, therefore, decided
to utilize the value chain analysis in the
various state-of-the sector reports
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SUMMARY OF VCA
? The Value chain concept identifies activities, functions,
business
processes that have to be performed in designing, production,
marketing, delivering, and supporting a product or service.
? The Value chain concept considers two main types of
activities:
PRIMARY Activities – that creates value to customers
SUPPORT Activities – that support and facilitate the primary
ones
? The Value chain model - views the organization as a chain,
or series of processes and activities each of which adds value
to the product or service for the customer
? We can use the value chain model to:
– plan for a better way of meeting customer demands;
– identify processes that add value;
– identify processes that reduce cost.
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Metalworks & Furniture Value
Chain:
Structure
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Transport Services, Energy & Water
Equipment & Spare Parts
Financial & Business Services, Designers
Bamboo & Rattan
H
o
u
s
e
h
o
l
d
s
&
I
n
s
t
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t
u
t
i
o
n
s
C
o
n
t
r
a
c
t
o
r
s
Forestry Logging Sawmills
Steel Structure Buildings
Fences & Grills
Doors & Windows
Carpentry, Parquet
Room Ceilings
Furni-
ture
Retail
Furni-
ture
Ma-
king
Chip-
board
Wood
Trade
Upholstry
Paints
Fittings
Metal
Import
&Trade
Iron Hardware Import
Steel
Wire
Reinforcement bars
Nails, nuts
& bolts
Fencing
Iron
Sheet
Profiles
Tubes
Roofing
Cereal Processing Value Chain:
Structure
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C
o
n
s
u
m
e
r
s
Supermar-
kets, Food
Retail
Bars &
Restau-
rants
Beer
Brewe-
ries
Flour
Mills
Trad.Breweries
(Tela)
Malting
Traditional Dry Food Retail
Milling
Service
Roasting
Anim
al
Feed
Cereal
Farming
Cleaning
& Grading
Storage
Collec-
tion
Spices,
Oilseeds,
Pulses
Pasta
Cookies
Seeds,
Agro-
Chemica
ls
Threshin
g &
Harvesti
ng
Services
Transport Services
Equipment & Spare Parts
Financial & Business Services
Packaging Materials
Bakeries & Pastry
Building Construction Value
Chain:
Structure
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r
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v
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P
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c
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Transport Services, Energy & Water
Equipment & Spare Parts
Financial & Business Services
Packaging Materials
General
Contractors
Special
Contractors
Consultants
Retail Trade
Concrete Pipes
Hollow Blocks
Concrete Tiles
Metal Hardware
(Production/ Import
/Wholesale)
Sanitary Ware
Electricals
Paints&Lacquer
Marble Production
Metalworks & Furniture
Cement Industry
Sand, Earth & Gravel
Mining
(Limestone,
Gravel
stones,
Marble)
The value chain
Order Administration
GI Inquiry Quotation Delivery Invoice
Invoicing
Contracts
Returns
Delivery Schedules
Product proposals
Availability & Credit check
Completion check
Pricing
Bonus
Grouping
Invoice List
Debit/Credit
etc
Financial
update
Service
Financial
update
Transport
planning
Quality
Sales
Support
Sales Order
Processing
Production
Project
Copy
Machine
Profit.
Analysis
Purchase
Picking/Packing
Pricing
Credit check
Follow-up
etc
Shipping Support
Competitors
& Products
Mailings
Calendar
etc
Pricing
Configuration
EDI
Follow-up
etc
Human
Resource
Corporate
Plan
77 VCA © Baba
doc_665853482.pptx
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
VALUE CHAIN ANALYSIS
Strategic Cost Management Tool
1 VCA © Baba
4
BUSINESS LEVEL STRATEGY ANALYSIS
The Positioning Approach.
- Porter’s 5 Forces.
- Value Chain Analysis.
- The Generic Strategies.
2 VCA © Baba
The Positioning Approach
eThe oldest approach to military
strategy.
eThe newest of the three
prescriptive approaches to strategy
.
eFocuses on how firms in a given
context differ in product market
positions compared to the
competition.
80
3 VCA © Baba
Premises of The Positioning Approach
eStrategy follows structure.
eLooks at the groups of competitors
in an industry.
eRelies more heavily on calculation
than the design or planning schools.
ePlaces even more emphasis on the
role of strategic planners.
81
4 VCA © Baba
Porter’s Five Forces Analysis
Breaking Apart Industry-Level
Competition
87
5 VCA © Baba
Porter’s Five Forces Analysis
Threat of
Entry
6 VCA © Baba
The 6 Barriers of Entry
·Economies of Scale.
Product Differentiation.
Capital Requirements.
¬Cost Disadvantages Independent of Size.
+Access to Distribution Channels.
´Government Policy.
89
7 VCA © Baba
Porter’s Five Forces Analysis
Power of
Buyers
8 VCA © Baba
Buyer Power Determinants
¯ Bargaining Leverage.
UBuyer Concentration
UBuyer Volume.
UBuyer Switching Costs.
UBuyer Information.
UAbility to Integrate Backward.
USubstitute Products.
UPull-Through.
90
9 VCA © Baba
Buyer Power Determinants
¯ Price Sensitivity.
UPrice/Total Purchases
UProduct Differences.
UBrand Identity.
UImpact on Quality/Performance.
UBuyer Profits.
UDecision-Maker’s Incentives.
90
10 VCA © Baba
Porter’s Five Forces Analysis
Power
of
Suppliers
11 VCA © Baba
Supplier Power Determinants
¯ Differentiation of Inputs.
¯ Switching Costs of Suppliers.
¯ Presence of Substitute Products.
¯ Supplier Concentration.
¯ Importance of Volume to Supplier.
¯ Cost Relative to Total Purchases in
the Industry.
¯ Impact of Inputs on Cost or
Differentiation.
90
12 VCA © Baba
Porter’s Five Forces Analysis
Power
of
Substitutes
13 VCA © Baba
Power of Substitutes
¯ Relative Price Performance of
Substitute.
¯ Switching Costs.
¯ Buyer Propensity to Substitute.
92
14 VCA © Baba
Porter’s Five Forces Analysis
Competitive
Rivalry
15 VCA © Baba
Determinants of Rivalry
Competition is
Everything!!!
¯ Industry Growth.
¯ Fixed Costs/Value Added.
¯ Intermittent Overcapacity.
¯ Product Differences.
¯ Brand Identity.
¯ Switching Costs.
¯ Concentration and Balance.
¯ Informational Complexity.
¯ Diversity of Competitors.
¯ Corporate Stakes.
¯ Exit Barriers.
16 VCA © Baba
Creating Families of
Strategies
1. Locating the core business.
2. Distinguishing the core business.
3. Elaborating the core business.
4. Extending the core business.
5. Reconceiving the core business.
94
17 VCA © Baba
Creating Families of Strategies
1 . Locating the core business.
2 . Distinguishing the core business.
3 . Elaborating the core business.
4 . Extending the core business.
5 . Reconceiving the core business.
The Core Business is reflected in the
Choice of Generic Strategies
18 VCA © Baba
Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
Figure 4
99
19 VCA © Baba
Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
2. Differentiation
Figure 4
20 VCA © Baba
Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
2. Differentiation
3A. Cost Focus
Figure 4
21 VCA © Baba
Porter’s Generic Strategies
Cost Advantage
Competitive
Scope
Broad
Target
Narrow
Target
Lower Cost Differentiation
1. Cost Leadership
2. Differentiation
3A. Cost Focus
Figure 4
3B. Differentiation
Focus
22 VCA © Baba
Strategies of Differentiation
v Price Differentiation.
v Image Differentiation.
v Support Differentiation.
v Quality Differentiation.
v Design Differentiation.
v Undifferentiation.
99
23 VCA © Baba
Strategies of Scope
vUnsegmentation.
vSegmentation.
vNiche.
vCustomizing.
100
24 VCA © Baba
Elaborating the Core Business
vPenetration Strategies.
vMarket Development Strategies.
vGeographic Expansion Strategies.
vProduct Development Strategies.
25 VCA © Baba
Existing Product New Product
Existing
Market
New
Market
Penetration
Strategies
Market
Development
Strategies
Product
Development
Strategies
Diversification
Strategies
Ways to Elaborate a Given
Business
Figure 5 101
26 VCA © Baba
What is value chain analysis?
? VCA (Value Chain Analysis) is a tool to measure importance of
customer’s perceived value.
? By enabling companies to determine strategic advantages &
disadvantages of their activities & VC processes in the market VCA
becomes essential for assessing competitive advantage
? Used to identify sources of competitive advantage
? Specifically:
? Opportunities to secure cost advantages
? Opportunities to create product/service differentiation
? Includes the value-creating activities of all industry participants
? VCA encouraged exploiting the ignored potential of vertical
synergies
? Porter offered VCA as a way to implement competitive strategy
? Used to identify sources of competitive advantage
? Specifically:
? Opportunities to secure cost advantages
? Opportunities to create product/service differentiation
? Includes the value-creating activities of all industry participants
27 VCA © Baba
Michael Porter
? VCA popularized by Porter’s 1985 book, Competitive
Advantage
? An approach to ?close the strategic gap? between internal
capabilities and external opportunities.
? 1985 – Michael Porter introduces value chain analysis as a
technique to
? Evaluate the internal and external business processes as
a competitive
advantage vs. standard financial metrics (P&L,
Balance, Cash Flow)
? The value paid by the Customer will be greater than the
cost of all value
? Added activities resulting in a profit.
? Cost advantages and differentiation opportunities are
analyzed
throughout the value chain to become more competitive.
28 VCA © Baba
THE VALUE CHAIN
? Can be used to examine the various activities of the firm and how they
interact in order to provide a source of competitive advantage by:
- Performing these activities better
Or
- At a lower cost than the competitors.
Definition
Interlinked value-adding activities that convert inputs into outputs which,
in turn, add to the bottom line and help create competitive advantage.
? What Does Value Chain Mean?
A high-level model of how businesses receive raw materials as input,
add value to the raw materials through various processes, and sell
finished products to customers.
? Value-chain analysis looks at every step a business goes through, from
raw materials to the eventual end-user. The goal is to deliver maximum
value for the least possible total cost.
? Value-chain analysis looks at every step a business goes through, from
raw materials to the eventual end-user. The goal is to deliver maximum
value for the least possible total cost
29 VCA © Baba
• Identify which resources and capabilities add
value
• Goal: add as much value as cheaply as
possible
• To be a source of competitive advantage, a
firm must either perform an activity:
• In a manner that is superior to other firms
• That other firms cannot perform
Value Chain Analysis
30 VCA © Baba
What is the value chain?
? Porter’s definition includes all activities
to –
? design,
? produce,
? market,
? deliver, and
? support the product/service.
? Two categories:
? Primary Activities (operations, distribution,
sales)
? Support Activities (R&D, Human
Resources)
31 VCA © Baba
Value Chain Activities, cont.
? Most value chain activities are
interlinked, and dependant upon the
others
? Competitive advantage can be
achieved by single activities
? The best competitive advantages are
based upon complex linkages
? Value Chain Analysis pinpoints these
opportunities
32 VCA © Baba
Strengths and Advantages
?Porter challenged conventional
management theory
?VCA = superior method of exploiting
sources of competitive advantage
?Encourages internal/external synergies
(strategic fits)
33 VCA © Baba
? Linking Value Chain Analysis to
Competitive Advantage
? What activities a business undertakes is
directly linked to achieving competitive
advantage. For example, a business which
wishes to outperform its competitors through
differentiating itself through higher quality
will have to perform its value chain activities
better than the opposition. By contrast, a
strategy based on seeking cost leadership
will require a reduction in the costs
associated with the value chain activities, or a
reduction in the total amount of resources
used
34 VCA © Baba
Value Chain Model
from Michael E. Porter’s Competitive
Advantage
VCA © Baba
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Firm Infrastructure (General Management)
Human Resource Management
Technology Development
Procurement
Inbound
Logistics
Ops.
Outbound
Logistics
Sales &
Marketing
Service and
Support
PRIMARY ACTIVITIES
SUPPORT
ACTIVITIES
Primary
Activity
Description
Inbound
logistics
All those activities concerned with receiving
and storing externally sourced materials
Concerned with receiving, storing, distributing
inputs (e.g. Handling of raw materials, warehousing,
inventory
control)
Operations
The manufacture of products and services -
the way in which resource inputs (e.g.
materials) are converted to outputs (e.g.
products) Comprise the transformation of the inputs into
the final product form (e.g. Production, assembly, and
packaging)
36 VCA © Baba
Outbound
logistics
All those activities associated with getting
finished goods and services to buyers Involve the
collecting, storing, and distributing the product to the buyers
(e.g. Processing of orders, warehousing of finished goods, and
delivery)
Marketing
and sales
Essentially an information activity - informing
buyers and consumers about products and
services (benefits, use, price etc.) How buyers can
be convinced to purchase the product (e.g. Advertising,
promotion, distribution)
Service All those activities associated with
Maintaining product performance after the
product has been sold Involves how to maintain the
value of the product after it is purchased (e.g. Installation, repair,
maintenance, and training)
37 VCA © Baba
Secondary
Activity
Description
Procurement This concerns how resources are acquired for a
business (e.g. sourcing and negotiating with materials
suppliers,Concerned with the tasks of purchasing inputs such
as
raw materials, equipment, and even labor & handling of raw
materials, warehousing, inventory control (e.g. with receiving,
storing, distributing inputs)
Human
Resource
Management
Those activities concerned with recruiting, developing,
motivating and rewarding the workforce of a business –
Involved in recruiting, hiring, training, development and compensation.
Technology
Development
Activities concerned with managing information
processing and the development and protection of
"knowledge" in a business These activities are intended to
improve the product and the process, can occur in many parts of the
firm
Infrastructure
Concerned with a wide range of support systems and
functions such as finance, planning, quality control and
general senior management . The activities which are not
specific to any activity area such as general management, planning,
finance, and accounting are categorized under firm infrastructure.
38 VCA © Baba
Steps in Value Chain Analysis
Value chain analysis can be broken down into
a three sequential steps:
(1) Break down a market/organisation into its
key activities under each of the major headings
in the model;
(2) Assess the potential for adding value via
cost advantage or differentiation, or identify
current activities where a business appears to
be at a competitive disadvantage;
(3) Determine strategies built around focusing
on activities where competitive advantage can
be sustained
39 VCA © Baba
USES OF VCA
? The sources of the competitive advantage of a firm
can be seen from its discrete activities and how
they interact with one another.
? The value chain is a tool for systematically
examining the activities of a firm and how they
interact with one another and affect each other’s
cost and performance.
40 VCA © Baba
Goal of Value Chain
? Driven by customer perceptions
? Increase margins
? Focus on value processess
? Distinctive capabilities
? Cost advantages
? Some examples
? Southwest Airlines
? Intel Corporation
VCA © Baba
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VALUE
? The value is the total amount (i.E. Total
revenue) that buyers are willing to pay for a
firm’s products.
? The difference between the total value (or
revenue) and the total cost of performing all of
the firm’s activities provides the margin
42 VCA © Baba
Value Chain Analysis-process
? Document the activities
? Understand the cost and margins at
each step.
? Use Activity Based Costing
? Map the value chain to the industry
value chain
? Look for core competencies
? Map the cost structure
? Note that external values drive cost
advantages
VCA © Baba
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VALUE ACTIVITIES
? Those activities that are distinct both physically and
technologically.
? Some activities are more vital than others depending upon the
industry.
? For instance, marketing activities would be more vital in a very
competitive consumer goods industry than in a telephone
monopoly.
? Some activities are direct in the sense that they are directly
involved in creating value for the buyer.
? Some activities are indirect and are involved only in making it
possible to perform the direct activities on a continuing basis
(e.g. Maintenance, scheduling, operation of facilities, record
keeping).
? Some activities are primarily involved in quality assurance and
are involved mainly in ensuring the quality of other activities
(e.g. Monitoring, inspecting, testing, etc.) .
? Every activity that is done by a firm needs to be captured in a
primary or support activity.
? The activities with discrete technologies and economics should
be isolated.
? The value labels are arbitrary and they should be chosen in
order to provide the best insight into the business.
?
44 VCA © Baba
VALUE ACTIVITIES contd.
? It is advisable to assign the value activities to categories
that best represent their contribution to a firm’s competitive
advantage.
? An activity can be separated from other activities if it has
any of the following characteristics;
a) has a different economics
compared to the others
B) has a high potential impact of
differentiation and,
c) represents a significant or
growing proportion of the cost
of production or operation.
? Some activities should be combined if they are not
important to competitive advantage of the firm or if their
economics are similar to the other activities.
45 VCA © Baba
D. Label Non-value Added Activities
Non-value added activity: An activity that does not
contribute to customer value or to the organization's
needs. The designation "non-value added" reflects the
belief that the activity can be redesigned, reduced, or
eliminated without reducing the quantity,
responsiveness, or quality of the output required by
the customer or the organization. (Source: CAM-I
Glossary)
Use a different color dot to designate non-value added
activities on the activity Post-Its on the activity by
organization map.
46 VCA © Baba
Summary of Steps
A. Identify the key activities of the process.
B. Sequence activities on an activity by
organization
map.
C. Identify the cost, time, and quality of
each activity.
D. Label non-value added activities
47 VCA © Baba
ANALYZING THE CHAIN
? Cover the entire cost structure of the
company.
? Be sure to include the sub-contracted
or outsourced portions
48 VCA © Baba
LINKAGES WITHIN THE VALUE CHAIN
? Not just a compilation of activities that are
independent of each other;
? Instead, it is a system of activities that are
interdependent because they are related by
their linkages.
? Through the linkages, the performance of
one activity affects the cost or performance
of another. These linkages between the
activities suggest that the cost advantage or
the differentiation of a firm would depend
not just on the cost reduction or
performance improvement of an individual
activity.
? Do not just look at each activity
independently
49 VCA © Baba
LINKAGES WITHIN
THE VALUE CHAIN
? The linkages between the activities can be
identified by searching for ways in which
each value activity affects or is affected by
others.
? Optimization and coordination between the
various activities of the firm can be achieved
by exploiting these linkages.
50 VCA © Baba
VERTICAL LINKAGES
? Linkages can also exist outside the firm; for
instance there is a linkage between a firm’s
chain and the value chain of its suppliers
and channels.
? E.G. The activities of the raw materials
suppliers affect the activities of the firm.
Similarly, the activities of the distributor also
affect the firm.
51 VCA © Baba
Strengths and Advantages
? VCA & SWOT
? Tool for understanding:
? Strengths
? Weaknesses
? Competitive positioning
? Illustrates how competitive advantage
can be achieved & sustained
52 VCA © Baba
SUPPLIER F I R M
CHANNEL /
BUYER
VALUE SYSTEM:
LINKAGES OF ACTIVITIES
BETWEEN FIRMS
53 VCA © Baba
VCA TACTCAL ANALYSIS
? What value chain segments provide opportunity to extract
additional profit?
? What opportunities exist for portfolio expansion (or
contraction)?
? What market opportunities exist for existing technology in
new and attractive markets?
? Can additional value be extracted by meeting unmet needs
along the value chain?
? What are the critical success factors for each technology and
market?
? What are the value propositions of competing and emerging
technology?
? Who are the emerging competitors in each technology and
market segment?
? •How does an organization maintain a competitive
advantage through the Customer Experience?
54 VCA © Baba
VERTICAL LINKAGES
? These linkages can provide opportunities for the firm to
enhance its competitive advantage.
? The value chain of a firm is a part of the value system,
which is the larger stream of activities from suppliers to
buyers
? The product of a firm represents a purchased input to the
buyer’s chain.
? Differentiation can result from how a firm’s value chain
relates to the value chain of its buyer.
? Value is created when a firm creates competitive
advantage for its buyer.
? A firm can also enter into coalitions with independent firms
to achieve benefits from the linkages among their various
value chains.
? Examples of such coalitions are technology licenses and
joint ventures.
? Because of the interactions between them, the suppliers
and even the channels affect a company’s value chain.
55 VCA © Baba
Too Simplistic
? Porter’s VCA is a straightforward theory, but
much more difficult to apply in practice.
? Major Factor – Expensive $$$$$$$$$$$$$$ for
? Customer Research
? Competitive Analysis
? Industry Structure Analysis
? Data is not easily available
? Accounting systems are not set up to gather the
correct information to make VCA data gathering easy.
? Solution: Activity Based Accounting (ABC) & ABM.
56 VCA © Baba
Applying VCA
? Step 1: Define firm’s strategic business
units
? Draw boundaries around business
segments
? Different segments
? Different competitive advantages
? Different strategies
? Step 2: Identify critical value-creating
activities
? Different economic structures
? Contribute large/growing % of total costs
? Contribute to product/service differentiation
57 VCA © Baba
Step Three
? Step 3: Conduct internal cost analysis
? Internal
? Identify cost drivers
? Functional
? Executional
? Identify existing VCA
? Explore strategic cost management
? External
? Benchmark competition
? Revamp cost structure & secure low cost
advantage
58 VCA © Baba
Step Four
? Conduct an Internal Differentiation Analysis
? Identify value creating activities and cost drivers.
? Meld customer knowledge with appropriate strategy.
? Engage in customer dialogue (surveys, focus groups, etc.)
? Find out how to provide more value to the customer.
? Determine differentiation strategy.
? Product or Service Attributes
? Channel Management
? Customer Support
? Pre- and Post-Sale Support
? Branding
? Price
? KEY: Choose best strategy to meld companies
core competencies with customer demands for
value.
59 VCA © Baba
Step Five
¤Industry Profit Pool
ODefine parameters of the Industry Profit Pool
¤Who or what is considered a market or a competitor.
(Don’t forget crossovers and migrating companies.)
OEstimate the total size of the Industry Profit
Pool
¤Use government resources and accounting
information.
OEstimate Distribution of the Profit Pool
¤Who has what amount of the market share?
60 VCA © Baba
Step Six: Vertical Linkage
Analysis
? Allows analyst to determine how to
reposition the firm in the ?deep end? of the
industry profit pool—and stay there.
? Most difficult step, since vertical linkages
are less tangible.
? First, analyze the industry using Porter’s
Five Forces analysis.
? Second, determine the cost drivers and
core competencies driving each competitor.
? Core competency = capabilities, skills, and
technologies that create low cost or
differentiation customer value.
61 VCA © Baba
Step Six, cont.
SWOT
? Third, evaluate the firm’s existing core
competencies.
? Determine opportunities to acquire or
strengthen related competencies
through vertical linkages with
suppliers, buyers, etc.
? Avoid the temptation to utilize a mixed
strategy (low-cost and differentiation)
62 VCA © Baba
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
63 VCA © Baba
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
64 VCA © Baba
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
65 VCA © Baba
Step Seven: Iteration
? Repeat steps one through six periodically
to proactively manage industry change.
66 VCA © Baba
Using the Value Chain
? Helps you to stay out of the ?No Profit
Zone?
? Presents opportunities for integration
? Aligns spending with value processes
? Provides for reconfiguration of the value
chain
? outsourcing
? off-shoring
? co-location with customers or suppliers
? redesign for efficiency
? Involves chain partners: customers &
suppliers
VCA © Baba
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Value Chain and the TBC
Triangle
? Technical:
? Increases knowledge of no profit zones
? Increases knowledge of forward and/or backward
integration opportunities
? Identifies value processes
? Identifies win-win alliance opportunities
? Behavioral:
? Focus shifts to ?the customer?
? Focus shifts from conflict to partnering with
customers & suppliers
? Cultural
? Creates externally focused mindset
? Generates information sharing environment with
respect for confidentiality
VCA © Baba
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Competitive scope and business
definition
? Define the business unit in which the
value chain would be optimal for the
firm
E.G. Export sales division vs. Local sales
division
69 VCA © Baba
Applying the value chain to an
industry
? The value chains of the different firms
within an industry vary from one
another.
? In fact, the differences in the value
chains among the different industry
players provide the source of
competitive advantages between
these players.
70 VCA © Baba
Applying the value chain to an
industry
? Since the application of the value chain
analysis to an industry will likely blur or hide
these sources of competitive advantage, dr.
Porter therefore suggests that:
The business unit is the correct level to
construct a value chain
and
The application to an entire sector or
industry is not recommended.
71 VCA © Baba
Applying the value chain to an
industry
? Nevertheless, value chain analysis on an
industry level has been performed in
numerous industry studies all over the
world.
? The pearl 2 project has, therefore, decided
to utilize the value chain analysis in the
various state-of-the sector reports
72 VCA © Baba
SUMMARY OF VCA
? The Value chain concept identifies activities, functions,
business
processes that have to be performed in designing, production,
marketing, delivering, and supporting a product or service.
? The Value chain concept considers two main types of
activities:
PRIMARY Activities – that creates value to customers
SUPPORT Activities – that support and facilitate the primary
ones
? The Value chain model - views the organization as a chain,
or series of processes and activities each of which adds value
to the product or service for the customer
? We can use the value chain model to:
– plan for a better way of meeting customer demands;
– identify processes that add value;
– identify processes that reduce cost.
73 VCA © Baba
Metalworks & Furniture Value
Chain:
Structure
VCA © Baba
July
200
5
Slid
e
74
Transport Services, Energy & Water
Equipment & Spare Parts
Financial & Business Services, Designers
Bamboo & Rattan
H
o
u
s
e
h
o
l
d
s
&
I
n
s
t
i
t
u
t
i
o
n
s
C
o
n
t
r
a
c
t
o
r
s
Forestry Logging Sawmills
Steel Structure Buildings
Fences & Grills
Doors & Windows
Carpentry, Parquet
Room Ceilings
Furni-
ture
Retail
Furni-
ture
Ma-
king
Chip-
board
Wood
Trade
Upholstry
Paints
Fittings
Metal
Import
&Trade
Iron Hardware Import
Steel
Wire
Reinforcement bars
Nails, nuts
& bolts
Fencing
Iron
Sheet
Profiles
Tubes
Roofing
Cereal Processing Value Chain:
Structure
VCA © Baba
July
200
5
Slid
e
75
C
o
n
s
u
m
e
r
s
Supermar-
kets, Food
Retail
Bars &
Restau-
rants
Beer
Brewe-
ries
Flour
Mills
Trad.Breweries
(Tela)
Malting
Traditional Dry Food Retail
Milling
Service
Roasting
Anim
al
Feed
Cereal
Farming
Cleaning
& Grading
Storage
Collec-
tion
Spices,
Oilseeds,
Pulses
Pasta
Cookies
Seeds,
Agro-
Chemica
ls
Threshin
g &
Harvesti
ng
Services
Transport Services
Equipment & Spare Parts
Financial & Business Services
Packaging Materials
Bakeries & Pastry
Building Construction Value
Chain:
Structure
VCA © Baba
July
200
5
Slid
e
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P
r
i
v
a
t
e
/
P
u
b
l
i
c
C
o
n
s
t
r
u
c
t
i
o
n
Transport Services, Energy & Water
Equipment & Spare Parts
Financial & Business Services
Packaging Materials
General
Contractors
Special
Contractors
Consultants
Retail Trade
Concrete Pipes
Hollow Blocks
Concrete Tiles
Metal Hardware
(Production/ Import
/Wholesale)
Sanitary Ware
Electricals
Paints&Lacquer
Marble Production
Metalworks & Furniture
Cement Industry
Sand, Earth & Gravel
Mining
(Limestone,
Gravel
stones,
Marble)
The value chain
Order Administration
GI Inquiry Quotation Delivery Invoice
Invoicing
Contracts
Returns
Delivery Schedules
Product proposals
Availability & Credit check
Completion check
Pricing
Bonus
Grouping
Invoice List
Debit/Credit
etc
Financial
update
Service
Financial
update
Transport
planning
Quality
Sales
Support
Sales Order
Processing
Production
Project
Copy
Machine
Profit.
Analysis
Purchase
Picking/Packing
Pricing
Credit check
Follow-up
etc
Shipping Support
Competitors
& Products
Mailings
Calendar
etc
Pricing
Configuration
EDI
Follow-up
etc
Human
Resource
Corporate
Plan
77 VCA © Baba
doc_665853482.pptx