Value Chain Analysis

Value Chain Template

Understand the value your business has delivered to your customers.

About the Porter’s Value Chain Model (aka Value Chain Analysis template)

Commonly known as the Value Chain Analysis, Porter’s Value Chain Model is a much-used method to evaluate a business’s competitive edge and improve processes to have fewer bottlenecks and add more value to your customers. 

Keep reading to learn more about the Value Chain Analysis template. 

What is a value chain analysis template?

A value chain analysis template includes a set of activities that a company performs to deliver a valuable product from start to finish. The analysis itself allows your team to visualize all the business activities involved in creating the product — and helps you identify inefficiencies, bottlenecks, and miscommunications within the process. 

Advantages of building a value chain analysis template

First coined by Harvard Business School professor Michael Porter, the Porter’s Value Chain Model helps your team evaluate your business activities so you can find ways to improve your competitive advantage. The value chain analysis will also help you determine costs, find activities adding the most value, outshine your competitors, and improve the value of what you deliver to your customers.

Building a product can be costly in both time and resources. Even worse, it can be almost impossible to know whether a process works until after you’ve tried it. Porter’s Value Chain Model helps you visualize more complex or intangible processes.

Every business should perform this analysis at some point. Your team can do this anytime you want to improve your competitive advantage, taking the following steps:

  1. Define your business’s primary activities (e.g. logistics, operations, marketing).

  2. Define your business’s support activities (e.g. HR, infrastructure, tech).

  3. Analyze the cost and value of each.

  4. Discover opportunities that allow you to gain a competitive advantage. 

Create your own value chain analysis template 

Getting started with your team’s value chain analysis template is easy with Miro. Simply click “Use Template” and take the following steps to customize it for your own value chain analysis template:

Step 1: Replace the canned text in the orange squares and blue lines with your business’s specific primary and support business activities. 

Step 2: Use sticky notes to map out the process for each business activity.

Step 3: Identify where bottlenecks occur, and find areas where you can maximize value and gain a competitive advantage.

FAQs about Porter’s Value Chain Model

How do you draw Porter's value analysis?

You can build your Porter’s Value Chain Model following these steps: - Map all activities involved in producing your product - Calculate the cost of each activity - Find out what do your customers perceive as value - Check competitors Porter’s Value Chain Model and benchmarks - Choose what’s your competitive advantage and where will you capitalize

How do you analyze a value chain?

After building your value chain analysis template, you can evaluate the links between each activity and its values. This value chain analysis is particularly crucial when increasing competitiveness as it will determine how to proceed to improve processes.

How do you write a value chain analysis?

You can write your value chain analysis determining which activities are to be optimized. The analysis should include quantitative and qualitative data to help you develop action points to increase your product’s added value and customer base. After your value chain analysis is ready, you can draw a business case to implement changes and help you prioritize.

Value Chain Template

Get started with this template right now.

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