3 steps for conducting a strategic value chain analysis

Strategy
Strategy

Business entities exist to create value for their customers. Value chain analysis is a comprehensive and strategic technique for analysing a business entity’s source of competitive advantage.

Value chain analysis is based on the principle that business entities exist to create value for customers. Value chain analysis encompasses dividing a business entity’s activities into separate sets of activities that add value. An examination of each activity or value chain component helps identify sources of competitive advantages. Each value chain activity is considered to be a source of competitive advantage.

3 steps for conducting a strategic value chain analysis around your business are as follows: