VALUE CHAIN

Value Chain
◦ A perspective in which business is seen as a chain of
activities that transforms inputs into outputs that customers
value.
 Value Chain Analysis (VCA)
◦ Value chain analysis (VCA) attempts to understand how a
business creates customer value by examining the
contributions of different activities within the business to
that value

◦ VCA takes a process point of view

Value Chain Analysis
◦ Allows the firm to understand the parts of its operations that create
value and those that do not.
◦ A template that firms use to:
◦ Understand their cost position.
◦ Identify multiple means that might be used to facilitate implementation of a
chosen business-level strategy.
Value Chain Analysis (contd.)
◦ VCA divides (disaggregates) the business into a set of
activities that occur within the business.
◦ Activities are divided into two kinds
◦ Primary activities
◦ Support activities
Value Chain Analysis (cont’d)
◦ Value Chain
◦ Shows how a product moves from the raw-material stage to the final
customer.
◦ To be a source of competitive advantage, a resource or capability
must allow the firm:
◦ To perform an activity in a manner that is superior to the way competitors
perform it, or
◦ To perform a value-creating activity that competitors cannot complete
THE VALUE CHAIN
Value Chain Analysis (contd.)
◦ Primary Activities
◦ The activities in a firm of those involved in the physical creation
of the product, marketing and transfer to the buyer, and support

◦ Support Activities
◦ The activities in a firm that assist the firm as a whole by
providing infrastructure or inputs that allow the primary activities
to take place on an ongoing basis
Value Chain Analysis (cont’d)
◦ Primary activities involved with:
◦ A product’s physical creation
◦ A product’s sale and distribution to buyers
◦ The product’s service after the sale
◦ Support Activities
◦ Provide the assistance necessary for the primary activities to take place.
1. Primary activities

◦ Inbound logistics: aktivitas yang berhubungan dengan penanganan material

sebelum digunakan.
◦ Operations: akivitas yang berhubungan dengan pengolahan input menjadi output.
◦ Outbound logistics: aktivitas yang dilakukan untuk menyampaikan produk ke
tangan konsumen.
◦ Marketing and sales: aktivitas yang berhubungan dengan pengarahan konsumen
agar tertarik untuk membeli produk.
◦ Service : aktivitas yang mempertahankan atau meningkatkan nilai dari produk.
2. Supported activities
◦ Firm Infrastructure: terdiri dari departemen-departemen atau fungsi-fungsi
(akuntansi, keuangan, perencanaan, dan sebagainya) yang melayani kebutuhan
organisasi dan mengikat bagian-bagiannya menjadi sebuah kesatuan.
◦ Human Resources  Management: Pengaturan sumber daya manusia mulai
dari perekrutan, kompensasi, sampai pemberhentian.
◦ Technology Development: pengembangan peralatan, software, hardware,
prosedur, didalam transformasi produk dari input menjadi output.
◦ Procurement: berkaitan dengan proses perolehan input/sumber daya.
Value Chain Analysis (cont’d)
◦ Each activity should be examined relative to competitor’s abilities and rated as superior, equivalent or
inferior