Transcript What is Value Chain Analysis?

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
Critical internal weaknesses
A resource advantage relative
to competitors and the needs of
markets firm serves
A limitation or deficiency in one or
more resources or competencies
relative to competitors
Internal Analysis: Making Meaningful
Comparisons
1. Comparison with past
performance
2. Stages of
industry evolution
Perspectives
to use
3. Benchmarking –
comparison with competitors
4. Comparison with
success factors in
industry
Sources of Distinctive Competence at Different
Stages of Industry Evolution
Functional
Area
Marketing
Introduction Growth
Maturity
Decline
Resources/skills
to create
widespread
awareness and
find acceptance
from customers ;
advantageous
access to
distribution
Skills in
aggressively
promoting
products to new
markets and
holding existing
markets; pricing
flexibility; skills
in differentiating
products and
holding
customer loyalty
Cost effective
means of
efficient access
to selected
channels and
markets; strong
customer loyalty
or dependence;
strong company
image
Ability to
establish brand
recognition,
find niche,
reduce price,
solidify strong
distribution
relations, and
develop new
channels
iPOD: 科技行銷的經典案例
(contd.)
Functional
Area
Production
operations
Introduction
Growth
Maturity
Decline
Ability to
expand
capacity
effectively, limit
number of
designs,
develop
standards
Ability to add
product variants,
centralize
production, or
otherwise lower
costs; ability to
improve product
quality;
seasonal
subcontracting
capacity
Ability to
improve product
and reduce
costs; ability to
share or reduce
capacity;
advantageous
supplier
relationships;
subcontracting
Ability to prune
product line;
cost advantage
in production,
location or
distribution;
simplified
inventory
control;
subcontracting
or long
production runs
(contd.)
Functional
Area
Finance
Introduction
Growth
Maturity
Decline
Resources to
support high net
cash overflow
and initial losses;
ability to use
leverage
effectively
Ability to finance
rapid expansion,
to have net cash
outflows but
increasing
profits;
resources to
support product
improvements
Ability to
generate and
redistribute
increasing net
cash inflows;
effective cost
control systems
Ability to reuse
or liquidate
unneeded
equipment;
advantage in
cost of facilities;
control system
accuracy;
streamlined
management
control
(contd.)
Functional
Area
Personnel
Introduction
Growth
Maturity
Decline
Flexibility in
staffing and
training new
management;
existence of
employees with
key skills in new
products or
markets
Existence of an
ability to add
skilled personnel;
motivated and
loyal workforce
Ability to cost
effectively,
reduce
workforce,
increase
efficiency
Capacity to
reduce and
reallocate
personnel
(contd.)
Functional
Area
Introduction
Growth
Maturity
Decline
Engineering and
R&D
Ability to make
engineering
changes, have
technical bugs in
product and
process
resolved
Skill in quality
and new feature
development;
ability to start
developing
successor
product
Ability to reduce
costs, develop
variants,
differentiate
products
Ability to support
other grown
areas or to apply
product to
unique customer
needs
Key functional
area and
strategy focus
Engineering:
market
penetration
Sales: consumer Production
loyalty; market
efficiency:
share
successor
products
Finance:
maximum
investment
recovery