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Value Chain Template

Comprehend the worth your business has provided to your customers.

About the Value Chain Template

Porter's Value Chain Model, also called the Value Chain Analysis, is a widely utilized technique for assessing a business's competitive edge and optimizing processes to reduce bottlenecks while increasing customer value.

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What is a value chain analysis template?

A value chain analysis template consists of a company's activities to deliver a valuable product from inception to completion. The analysis lets your team visualize all business activities involved in producing the product while identifying inefficiencies, bottlenecks, and communication breakdowns.

Advantages of building a value chain analysis template

Michael Porter, a professor at Harvard Business School, first introduced Porter's Value Chain Model as a tool to enable your team to evaluate your business activities and identify ways of enhancing your competitive advantage. The value chain analysis assists in cost determination and helps you pinpoint activities that add the most value, outperform competitors, and enhance customer value.

Product development can be expensive in terms of time and resources. Moreover, it can be challenging to determine whether a process is effective until after implementation. Porter's Value Chain Model aids in visualizing complicated or abstract processes.

At some point, every business should conduct this analysis. Your team can perform it whenever you seek to enhance your competitive advantage by following these steps:

  • Identify your business's core activities (e.g., logistics, operations, marketing).
  • Identify your business's supporting activities (e.g., HR, infrastructure, technology).
  • Evaluate the cost and value of each activity.
  • Uncover opportunities that enable you to attain a competitive edge.

Create your own value chain analysis template

Initiating your team's value chain analysis template is simple. Click "Use Template" and customize it for your specific value chain analysis template by following these steps:

Step 1: Fill in the orange squares and blue lines with your business's individual primary and supporting business activities.

Step 2: Utilize sticky notes to chart the process for each business activity.

Step 3: Identify bottlenecks, pinpoint areas where you can maximize value, and attain a competitive advantage.

FAQs about Porter’s Value Chain Model

How to construct Porter's value analysis?

To develop your Porter's Value Chain Model, follow these steps:

  • Chart all the activities involved in producing your product
  • Calculate the cost associated with each activity
  • Determine what your customers perceive as valuable
  • Examine competitors' Porter's Value Chain Model and benchmarks
  • Decide on your competitive advantage and where you will capitalize

How to analyze a value chain?

Once you've created your value chain analysis template, assess the connections between each activity and its values. This value chain analysis is especially significant when enhancing competitiveness because it determines how to proceed with process improvement.

How to compose a value chain analysis?

You can draft your value chain analysis by identifying the activities that require optimization. The analysis must comprise quantitative and qualitative data to assist you in creating action items that boost your product's added value and customer base. Once your value chain analysis is complete, you can create a business case outlining the implementation of changes and prioritization criteria.

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