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What is Value Chain Analysis?. Focuses on how a business creates customer value by examining contributions of different internal activities to that value Divides a business into a set of activities within the business Starts with inputs a firm receives
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What is Value Chain Analysis? • Focuses on how a business creates customer value by examining contributions of different internal activities to that value • Divides a business into a set of activities within the business • Starts with inputs a firm receives • Finishes with firm’s products or services and after-sales service to customers • Allows for better identification of a firm’s strengths and weaknesses since the business is viewed as a process
SWOT Analysis Based on assumption an effective strategy derives from a sound “fit” between a firm’s internal resources and its external situation Numerous environmental opportunities A major favorable situation in a firm’s environment Major environmental threats A major unfavorable situation in a firm’s environment Substantial internal strengths A resource advantage relative to competitors and the needs of markets firm serves Critical internal weaknesses A limitation or deficiency in one or more resources or competencies relative to competitors
Internal Analysis: Making Meaningful Comparisons 1. Comparison with past performance 4. Comparison with success factors in industry 2. Stages of industry evolution Perspectives to use 3. Benchmarking – comparison with competitors
Sources of Distinctive Competence at Different Stages of Industry Evolution
