Post by account_disabled on Mar 5, 2024 1:47:26 GMT -5
Have you ever stopped to look at any final product, say an ice cream, and thought in your head about the journey that ALL the ingredients had to make until the final ice cream reached your hand? How was milk transformed into ice cream and how did the ingredients get to the ice cream shop? I still stop to think about it from time to time, but at least I now understand that this entire process is called “Value Chain.” The value chain is the structure that unites all the pieces of a production process, from the producers of raw materials to the final consumer, passing through the processes. Does it seem complicated? I promise you that it is much simpler than it seems, and with examples it is always better understood, so... Shall we begin? What is the value chain and what is it for? The value chain is a concept that describes how companies transform their resources and processes into value-added products or services for their customers. In other words, it is the process that a company follows from the manufacturing of an idea until it becomes the product or service that reaches the end customer. "The value chain is the set of activities that a company carries out to create value for its customers" – Michael E. Porter. Advantages of analyzing the value chain in a company This theory is applicable to any company that markets products and/or services; the advantages of applying it are, among others: Improve operational efficiency by identifying and optimizing processes. Increase profitability by reducing costs and increasing the quality of products or services. Facilitate strategic decision making based on data and concrete facts. Promote innovation by detecting opportunities for improvement and new approaches in the market.
Enhance competitive differentiation by understanding and exploiting your competitive advantages. Origin of the value chain The value chain is a concept that arose thanks to Michael E. Porter , a professor at Harvard Business School and one of the leading experts in business strategy. In 1985, Porter presented the value chain model in his book “Competitive Advantage: Creating and Sustaining Superior Performance . ” In that book, Porter identified the importance of analyzing a company's internal and external activities to understand how value is created, distributed, and captured. Porter's value chain model has also been influenced by the work of McKinsey & Co , one of the most prestigious consulting firms in the world. McKinsey has been developing similar approaches to Chile Mobile Number List evaluate the performance and activities of companies, contributing its own knowledge and enriching the analysis of the value chain, such as the McKinsey matrix. Types of value chain There are several types of value chains, each with its own characteristics and applications. Some of the best-known models are the value chain for services, the McKinsey value chain and the Porter value chain. The value chain for services is an approach that focuses on companies that provide services rather than products. It is based on specific activities and processes that these companies carry out to generate value and satisfy the needs of their customers.
The McKinsey value chain is a model that incorporates elements of Porter's approach, but also adds its own perspectives and tools. It is especially useful for analyzing companies from different sectors and identifying opportunities for improvement and growth. Porter Value Chain Porter's original model is one of the most widely used today and provides a solid framework for analyzing how companies create value, it is based on two main categories of activities: primary activities and supporting activities. Primary activities focus on the creation and delivery of the product or service, while supporting activities help improve the efficiency and effectiveness of the primary activities. Analysis of a company's value chain To analyze the value chain of a company, you have to take into account many aspects of the competitive landscape, such as the degree of integration, the industrial landscape, the segment landscape and the geographic landscape, let's see them: Aspects of the competitive landscape This analysis is crucial to identify the company's strengths and weaknesses compared to its competitors and to find opportunities for improvement and growth. Some key aspects of the competitive landscape that you should take into account when analyzing the value chain are: Direct and indirect competitors Differentiation Entry and exit barriers Competitor strategies Degree of integration The degree of integration is the extent to which the stages of the value chain are controlled by a single company or by several.
Enhance competitive differentiation by understanding and exploiting your competitive advantages. Origin of the value chain The value chain is a concept that arose thanks to Michael E. Porter , a professor at Harvard Business School and one of the leading experts in business strategy. In 1985, Porter presented the value chain model in his book “Competitive Advantage: Creating and Sustaining Superior Performance . ” In that book, Porter identified the importance of analyzing a company's internal and external activities to understand how value is created, distributed, and captured. Porter's value chain model has also been influenced by the work of McKinsey & Co , one of the most prestigious consulting firms in the world. McKinsey has been developing similar approaches to Chile Mobile Number List evaluate the performance and activities of companies, contributing its own knowledge and enriching the analysis of the value chain, such as the McKinsey matrix. Types of value chain There are several types of value chains, each with its own characteristics and applications. Some of the best-known models are the value chain for services, the McKinsey value chain and the Porter value chain. The value chain for services is an approach that focuses on companies that provide services rather than products. It is based on specific activities and processes that these companies carry out to generate value and satisfy the needs of their customers.
The McKinsey value chain is a model that incorporates elements of Porter's approach, but also adds its own perspectives and tools. It is especially useful for analyzing companies from different sectors and identifying opportunities for improvement and growth. Porter Value Chain Porter's original model is one of the most widely used today and provides a solid framework for analyzing how companies create value, it is based on two main categories of activities: primary activities and supporting activities. Primary activities focus on the creation and delivery of the product or service, while supporting activities help improve the efficiency and effectiveness of the primary activities. Analysis of a company's value chain To analyze the value chain of a company, you have to take into account many aspects of the competitive landscape, such as the degree of integration, the industrial landscape, the segment landscape and the geographic landscape, let's see them: Aspects of the competitive landscape This analysis is crucial to identify the company's strengths and weaknesses compared to its competitors and to find opportunities for improvement and growth. Some key aspects of the competitive landscape that you should take into account when analyzing the value chain are: Direct and indirect competitors Differentiation Entry and exit barriers Competitor strategies Degree of integration The degree of integration is the extent to which the stages of the value chain are controlled by a single company or by several.