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Understanding Value Chain Analysis

The document discusses value chain analysis and the VRIO framework. It defines a value chain as the activities involved in designing, producing, marketing, delivering, and supporting a product or service. It identifies three types of value chains: manufacturing-based, service-based, and those combining manufacturing and services. Value chain analysis is used to identify sources of competitive advantage through cost advantages or product differentiation. The document also outlines Porter's value chain model and the primary and support activities within a firm. Finally, it defines the VRIO framework as a tool to evaluate an organization's resources and capabilities based on their value, rarity, imitability, and the organization's ability to exploit them.

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Laxmi Tyagi
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0% found this document useful (0 votes)
33 views13 pages

Understanding Value Chain Analysis

The document discusses value chain analysis and the VRIO framework. It defines a value chain as the activities involved in designing, producing, marketing, delivering, and supporting a product or service. It identifies three types of value chains: manufacturing-based, service-based, and those combining manufacturing and services. Value chain analysis is used to identify sources of competitive advantage through cost advantages or product differentiation. The document also outlines Porter's value chain model and the primary and support activities within a firm. Finally, it defines the VRIO framework as a tool to evaluate an organization's resources and capabilities based on their value, rarity, imitability, and the organization's ability to exploit them.

Uploaded by

Laxmi Tyagi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

VALUE CHAIN ANALYSIS

Presented By:
Kamini Jadon
Kumkum Baghel
Laxmi Tyagi
What is the value chain?
• Porter’s definition includes all activities to design,
produce, market, deliver is co, and support the
product/service.

• The value chain is concentrating on the activities starting


with raw materials till the conversion into final goods or
services.
Types of Value Chain
• Value chain is categorized into types based on the type of
organizations.
• There are three types of value chain:

1. Manufacturing based
2. Service based
3. Both manufacturing and service
based
What id Value chain analysis?
• Used to identify sources of competitive advantage.
• Specifically:
-opportunities to secure cost advantages
-opportunities to create product/service
differentiation

• Includes the value-creating activities of all industry


participants.
Value Chain Model
Types of firm activities
• Primary activities: • Support activities:

Inbound Firm
Logistics Infrastructure
Op

Resource Mngt,
e

Procurement
Servic

e
rat

Human
oni
s

Ma u nd
r
and ketin tbo tics Technology
Sa l g Ou ogis Development
es L
VRIO FRAMEWORK
What is VRIO Framework
• VRIO is a business analysis framework that forms part of a
firm's larger strategic scheme. The basic strategic process that
any firm begins with a vision statement, and continues on
through objectives, internal & external analysis, strategic
choices, and strategic implementation.

• VRIO is an acronym for a four-question framework


focusing on value, rarity, imitability, and
organization, the criteria used to evaluate an organization's
resources and capabilities.
Dimensions of VRIO

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