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Value Chain Analysis Framework PowerPoint Presentation Slides
The document outlines a value chain analysis framework for a company, detailing primary and support activities involved in producing goods and services, such as inbound logistics, operations, outbound logistics, marketing, and after-sales service. It emphasizes the importance of identifying cost advantages and differentiation strategies to enhance customer value, with a step-by-step approach for evaluating and planning improvements. Additionally, the document provides editable sections and visual elements intended for presentation purposes.
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Value Chain Analysis Framework PowerPoint Presentation Slides
- 1. Value Chain Analysis Framework YourCompany Name
- 2. Value Chain AnalysisFramework Primary Activities Support Activities Inbound Logistics o Real-time inbound inventory data o Location of distribution facilities o Trucks o Material Handling o Warehouse Operations oStandardized model oAccess to real-time sales & inventory system Outbound Logistics oOrder processing oFull delivery trucks Marketing & Sales oPricing oCommunication oPromotion oProduct based on community needs oLow prices After Sales Service oDelivery oInstallation oRepair oGreeters oCustomer service focus Firm Infrastructure Management, Finance, Legal, Planning Human resource management Professional development, Employee relations, Performance appraisals, Recruiting, Competitive wages, Training programs Technology Development Integrated supply chain system, Real-time sales information Procurement Real-time inventory, Communication with suppliers, Purchase supplies and materials This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2
- 3. Primary Activities DescriptionPrimary Activity Operations The manufactureof products and services – the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) Inbound Logistics All those activities concerned with receiving and storing externally sourced materials Service All those activities associated with maintaining product performance after the product has been sold Outbound Logistics All those activities associated with getting finished goods and services to buyers Marketing & Sales Essentially an information activity – informing buyers and consumers about products and services (benefits, use, price etc.) 3
- 4. Secondary Activities DescriptionSecondary Procurement All those activitiesconcerned with receiving and storing externally sourced materials Human Resource Management All those activities concerned with receiving and storing externally sourced materials Technology Development All those activities associated with getting finished goods and services to buyers Infrastructure Essentially an information activity – informing buyers and consumers about products and services (benefits, use, price etc.) 4
- 5. 5 This approach isused when organizations try to compete on costs & want to understand the sources of their cost advantage or disadvantage & what factors drive those costs Cost Advantage The firms that strive to create superior products or services use differentiation advantage approach Differentiation Advantage Value Chain – Approaches To Perform Analysis Competitive Advantages Types There are two different approaches on how to perform the analysis, which depend on what type of competitive advantage a company wants to create
- 6. CostAdvantage Identify the firm’sprimary and support activities o All the activities (from receiving and storing materials to marketing, selling and after sales support) that are undertaken to produce goods or services have to be clearly identified and separated from each other o This requires an adequate knowledge of company’s operations because value chain activities are not organized in the same way as the company itself Establish the relative importance of each activity in the total cost of the product o The total costs of producing a product or service must be broken down and assigned to each activity. Activity based costing is used to calculate costs for each process o Activities that are the major sources of cost or done inefficiently (when benchmarked against competitors) must be addressed first Step 1 Step 2 6
- 7. 7 Step 3 Identify cost driversfor each activity o Only by understanding what factors drive the costs, managers can focus on improving them. o Costs for labor-intensive activities will be driven by work hours, work speed, wage rate, etc Step 4 Identify links between activities o Reduction of costs in one activity may lead to further cost reductions in subsequent activities. o Identifying the links between activities will lead to better understanding how cost improvements would affect he whole value chain Step 5 Identify opportunities for reducing costs o When the company knows its inefficient activities and cost drivers, it can plan on how to improve them o Too high wage rates can be dealt with by increasing production speed, outsourcing jobs to low wage countries or installing more automated processes CostAdvantage
- 8. Differentiation Advantage After identifyingall value chain activities, managers have to focus on those activities that contribute the most to creating customer value o Managers can use the following strategies to increase product differentiation and customer value: o Add more product features o Focus on customer service & responsiveness o Increase customization o Offer complementary products Usually, superior differentiation and customer value will be the result of many interrelated activities and strategies used. The best combination of them should be used to pursue sustainable differentiation advantage Identify the Best Sustainable Differentiation Step 3 Evaluate the Differentiation Strategies for Improving Customer Value Step 2 Identify the Customers’ Value- creating Activities Step 1 8
- 9. Value Chain Analysis-3 Step Process 9 Evaluation& Planning Evaluate whether it is worth making changes, and then plan for action Activity Analysis Identify the activities you undertake to deliver your product or service Value Analysis For each activity thin through what you would do to add the greatest value for your customer
- 10. Competitor’s Value Analysis Value Activity1 Value Activity 2 Value Activity 3 Value Activity 4 Value Activity 5 Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 Competitor 8 10
- 11. 11 It’s Time Fora Coffee Break
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- 16. 0 10 20 30 40 50 60 70 80 Product 01 This slideis 100% editable. Adapt it to your needs and capture your audience's attention. Product 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Product 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Radar Chart 16 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
- 17. Scatter Chart 5 20 10 9 35 15 3030 56 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% X-Values Y-Values Product 01 17 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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