Developed by michael porter and used throughout the world for nearly 30 years, the value chain is a powerful tool for disaggregating a company into its strategically relevant activities in order to focus on the sources of competitive advantage, that is, the specific activities that result in higher prices or lower costs. Interestingly, the term value system has been as widely accepted as value chain has. If the technique is to be applied, refer to michael porters great book on competitive aedvanctage. Value chain analysis template online value chain example. Porters value chain what is the value chain of porter.
This download comprises a value chain analysis template contained in an ms excel spreadsheet developed on the basis of porters framework. In this section, users will find dozens of porters value chain model templates for ppt. One of his bestknown concepts is the value chain, which is used to deliver a product or service to the market and has three key objectives. A short video for accounting and business students identifying the main elements within porters value chain. In the new marketing era, with the rise of retail and ecommerce, companies have realized that your value chain will be further strengthened if you have better co. A value chain consists of the activities an organization performs to make a product that is valued by customers.
Given the importance of the value chain, michael porter developed a strategic management tool for analyzing a companys value chain. Apr 22, 2014 value chain analysis is a process improvement methodology developed by michael porter of harvard business school in the 1980s. Porter has dedicated much of his career to studying competitive advantage. Free value chain templates for word, powerpoint, pdf. Additional information may be found at the website of the institute for strategy and competitiveness. Competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firms cost of creating it. Porter s value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another.
It tracks the impact made on a product or service by every process from its start to delivery. The concept comes through business management and was first described by michael porter in his 1985 bestseller, competitive advantage. Porters value chain analysis by michael porter marketing tutor. Oct 15, 2019 michael eugene porter is an american academic known for his theories on economics, business strategy, and social causes. May 26, 2019 given the importance of the value chain, michael porter developed a strategic management tool for analyzing a companys value chain. Michael porters value chain is a strategic business planning tool used to identify where competitive advantage arises in your business. All unique elements from our site are gathered in one place so that you do not waste time and quickly select an appropriate slide. Porters value chain is a framework for developing an analytic structure that follows interdependent activities from raw material acquisition or idea through production and. Edraw is used as a value chain software coming with readymade value chain templates that make it easy for anyone to create beautiful value chain. Porters value chain lists nine activities that are found in most businesses. Value chain is used to analyze the flow of valueadding activities from the raw material.
The concept of the value chain was introduced by michael porter. Dec 08, 20 the value chain also known as porters value chain analysis is a business management concept that was developed by michael porter. Porters value chain cis 4397 intro to cloud computing. Porter five forces analysis industry analysis definition, advantages, and criticism.
He is credited for creating great works, porters five forces analysis, competitive strategy, national diamond and value chain. And in 1985, michael porter introduced a value chain that expanded leontiefs inputoutput model by emphasizing links between primary and support business activities. The value chain the term value chain was used by michael porter in his book competitive adva n tage. Inbound logistics includes receiving, storing, inventory control, transportation scheduling. Includes receiving, storing, inventory control, transportation scheduling. A value chain is a set of activities that an organization does to create value for its customers. The backbone of this model is the set of five primary activities that have been identified as porter as being relevant to all businesses. The value chain framework of michael porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage inbound logistics. Value chain analysis template online value chain example miro.
Porters value chain analysis by michael porter toolshero. Value chain michael porter was the first person who introduced the term value chain in his book competitive advantage. The supportive activities are formed by four key factors like technology aspects, and the primary activities has a series of subcategories such as branding, engagements, storing and so on. The value chain from competitive advantage, by michael porter. The concept since its introduction in 1980s has become a forefront in developing strategies around customer delight and commercial success. Porter harvard business school ford canada top 100. Value chain presentation template free powerpoint templates. Includes machining, packaging, assembly, equipment maintenance, testing and all other valuecreating activities. The value chain templates are easy to use and free. The emphasis is now on regional power coupled with increasing free trade. Jan 25, 2020 the porters value chain concept says that there is a chain of events which occur in a company right from the procurement of raw materials to the delivery of goods as well as the post sales service. A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product i. Creating and sustaining superior performance porter 1985.
Descargar competitive advantage michael porter en pdf. The concept comes from business management and was first described in 1985 by michael porter in his bestseller competitive advantage. Above is an image of michael porter who presented the concept of value chain. In his book competitive advantage 1985, michael porter explains value chain analysis. Porter value chain model ppt templates free download now. Michael porter discussed this in his influential 1985 book competitive advantage, in which he first introduced the concept of the value chain. A value chain is a set of activities that an organization carries out to create value for its customers. He is credited for creating great works, porter s five forces analysis, competitive strategy, national diamond and value chain. In his book competitive advantage, michael porter proposed the value chain as a way of understanding that competitive advantage is not created by a business but by each of the distinct value adding activities that it performs in designing, producing, marketing, delivering.
The value chain framework of michael porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage. Porter has suggested many ground breaking strategic concepts like porters five forces, competitive strategy, and others. T he value chain analysis describes the activ ities the organ ization performs and links them to the organizations competitive pos ition. According to michael porter, value chain consists all.
Visualise the presentation full screen or download it as a. Edraw can also convert all these templates into powerpoint, pdf or word templates. The value chain template in powerpoint format includes three slides. The nine main stages of the value chain are grouped together as five primary activities and four support activities. Porter proposed a generalpurpose value chain that any company can use to examine all its activities, and to see how theyre. Having evolved and adapted over the years, companies and industry specialists continue to successfully implement porters value chain analysis. Michael eugene porter is an american academic known for his theories on economics, business strategy, and social causes. Michael porters value chain is widely used in ppt presentations, projects and reports. The value chain analysis template below shows the very basic model of the porter s value chain analysis process. It is sometimes known as porters value chain as first described by michael porter in his 1985 bestseller competitive advantage. As you might have guessed, the value chain is a set of activities that will lead to the creation of value. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to. Sep 12, 2016 the value chain was introduced by michael s. Valuebased health care delivery harvard business school.
Porter s value chain the idea of the value chain is based on the process view of organisations, the idea of seeing a manufacturing or service organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. The value chain refers to the process of creating value throughout each step of of the business chain. Value chain analysis is used to identify an organizations major business processes and how they interact due to restrictions, this post only introduces the major concepts of value chain analysis. Value chain analysis is a process improvement methodology developed by michael porter of harvard business school in the 1980s. Michael porter in 1985, captures a series of actions that a firmin a specific industryaccomplishes to produce a valuable product or service for the market. It is a part of the field of strategic analysis the value chain refers to the process of creating value throughout each step of. However, the value chain analysis pioneered and illustrated by michael porter in his groundbreaking book, competitive advantage, remains an indispensable methodology. Michael porter defines value chain as a representation of a firms valueadding activities, based on its pricing strategy and cost structure. A value chain is a set of activities that a company performs in order to deliver a valuable product or service for its customers. A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. This chain is made up of 9 steps and the process can be changed in any of the nine steps to add further value to the final product. In his book, porter first time introduced value creation concept.
What are the primary activities of michael porters value chain. Every firm is a collection of activities that are performed to design, produce, market, deliver, and support its product. Sep 30, 2018 the value chain analysis sometimes refers to porters value chain analysis model is a wellknown business management tool developed by michael porter in 1985 in his alltime influential book competitive advantage. Porter saw the idea as a way of observing how businesses view the process of what they do when competing in the marketplace to. The idea of the value chain is based on the process view of organisations, the idea of seeing a manufacturing or service organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. The value chain notion visualizes the process view of an organization, perceiving a manufacturing or service organization as a system comprised of subsystems of inputs. Everything you need to know about value chain analysis. Porters value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. Aug 17, 2016 a short video for accounting and business students identifying the main elements within porters value chain.
If you want to increase your profits, porters value chain can identify where your small business creates value. A value chain is a highlevel model developed by michael porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various. All these activities can be represented using a value chain. What are the primary activities of michael porters value. The purpose of the value chain model, according to porter, was to systematically examine all the activities a firm performs and how they interact as cited in. The concept helps categories activities undertaken by enterprise to deliver a successful product to a customer. A generic, firm specific value chain is shown in figure 1. Porter proposed a generalpurpose value chain that companies can use to examine all of their.
Value chain analysis and competitive advantage article pdf available in journal of general management 271. Porters value chain analysis free management books. The scheme is a pure marketing and business tool that makes it possible to analyze. Download our free value chain templates in software package to. A firms value chain and the way it performs individual activities are a reflection of its history, its strategy, its. The value chain from competitive advantage, by michael. The value chain also known as porters value chain analysis is a business management concept that was developed by michael porter. Porters value chain analysis is a tool that can be used to determine exactly how your company goes about the task of creating value. Michael porter introduced a concept known as porters value chain. How to perform a value chain analysis projectengineer. The value chain analysis template below shows the very basic model of the porters value chain analysis process. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits. Porter, known for porters five forces, laid out his method.
Developed in the early 1980s by harvard business school professor michael porter in his book competitive advantage, the value chain consists of two main components. Michael porter discussed this in his book, competitive advantage, in which he introduced the concept of the value chain. A strategic vision to improve value by organizing around patients needs, health affairs, mar, 20. The complete guide to value chain modeling smartsheet. The value chain analysis sometimes refers to porters value chain analysis model is a wellknown business management tool developed by michael porter in 1985 in his alltime influential book competitive advantage.
1197 41 421 1295 401 1617 510 241 456 698 1096 865 252 687 1529 1237 1116 24 855 1229 899 1109 1193 598 892 564 9 1373 912 106 88 215 339 1096 1154 814 1190 314 883