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What is a value chain? Why it is important to analyse it?

10/6/2022

 
In any company, there is a succession of interconnected internal and external activities. The processes the company puts in place, and the way it approaches...
...these activities, creates value. This value is what consumers are willing to pay for the company's product or service. 

Knowing and analysing the value chain enables a company to identify its competitive advantage, and therefore to enter a market or improve its position in relation to the competition by offering a product/service that meets the consumer demand.

A good analysis of the company's core activities - procurement, manufacturing/production, distribution, sales, marketing and services - as well as supporting activities such as infrastructure, administration, accounting, purchasing and human resources can make a real difference whether you are an SME, a start-up or a multinational.

It allows you to find the levers on which you can/want to act according to the type of product/service you have, your target customers, the skills of your teams, the effort required for an activity, etc.

What doors can you open with this analysis? A change of supplier, better internal interaction, development of a new product, improvement of after-sales services, outsourcing or subcontracting certain tasks, among others.

A good way to focus on your core business, to accelerate your growth or to stay focused on what you do best.

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