Strategy & Business · Market & competition
Porter Value Chain Analysis
Value Chain Analysis · Strategy tool
It is unclear where value is created, where cost accumulates, and where differentiation is possible across the activity system.
Why use it
Analyze primary and support activities to find sources of cost advantage or differentiation.
How to apply
- Define the specific management situation and desired outcome.
- Gather the minimum facts, constraints, and perspectives needed to use the tool.
- Apply Porter Value Chain Analysis, make key assumptions explicit, and compare the result with realistic alternatives.
- Record the decision, next owner or action, and a testable criterion for the next step.
Output
A value-chain map with strategic improvement opportunities.