Value Chain Analysis

A value chain study examines how a company’s internal operations contribute to its competitive advantage.  Value chain analysis identifies the behaviours and procedures that differentiate a company from its competitors.

We’ll determine your competitive edge when we analyse your company’s value chain. Firms choose from cost advantage or differentiation advantage. A cost advantage strategy aims to make you the market’s cheapest provider. Low-cost companies have efficient operations and use cheap materials and resources to reduce their product’s price. To get a competitive edge, you may utilize a differentiation strategy to offer a unique or specialised product or service. The organisation must invest time and resources in innovation, research, and development. An effective differentiation strategy allows a corporation to charge a premium.

Value chain analysis requires identifying primary and auxiliary functions. You will know where you spend the most money, where your organisation can improve, and where your competitors can exceed you. In Primary Functions, we evaluate Inbound logistics (supplier locations and delivery costs), Operations (warehousing, machinery, and assembly line expenses), Outbound logistics includes shipping, warehouse, distributor, and order processing, Marketing and sales comprise advertising, promotional, reach, and cost-per-acquisition and Services include repair expenses, training costs, and product modification frequency. Auxiliary functions, on the other hand, assist primary activities in succeeding. And here we look at the Firm Infrastructure, Human Resource Management, Technology Development, and Procurement.

Assessing value chains can take months. Steps we take for creating a value chain analysis are as follows.