Page 73 - CL How to Read a Case Study
P. 73
Value Chain
Introduction
Value Chain Analysis describes the activities within and
around an organisation, and relates them to an analysis of
the competitive strength of the organisation.
Every function and activity, and how they interrelate, can
improve an organisation’s competitive position.
A formal means of categorizing vaIue-adding activities.
• Examine value delivered to the customer from the
customer’s viewpoint.
• Activities are driven by systems.
• For Manufacturing and Service Organisations.
• Managing the linkages between activities that give
competitive advantage.
Identify activities that sustain competitive advantage.
• Determine the cost or value drivers - factors that
govern the cost or value of each critical activity.
• Identify the key linkages that deliver competitive
advantage.
