VALUE CHAIN ANALYSIS Presented By: Kamini Jadon Kumkum Baghel Laxmi Tyagi What is the value chain? • Porter’s definition includes all activities to design, produce, market, deliver is co, and support the product/service. • The value chain is concentrating on the activities starting with raw materials till the conversion into final goods or services. Types of Value Chain • Value chain is categorized into types based on the type of organizations. • There are three types of value chain: 1. Manufacturing based 2. Service based 3. Both manufacturing and service based What id Value chain analysis? • Used to identify sources of competitive advantage. • Specifically: -opportunities to secure cost advantages -opportunities to create product/service differentiation • Includes the value-creating activities of all industry participants. Value Chain Model Types of firm activities • Primary activities: • Support activities: Firm Infrastructure Human Resource Mngt, Procurement Inbound Logistics Technology Development VRIO FRAMEWORK What is VRIO Framework • VRIO is a business analysis framework that forms part of a firm's larger strategic scheme. The basic strategic process that any firm begins with a vision statement, and continues on through objectives, internal & external analysis, strategic choices, and strategic implementation. • VRIO is an acronym for a four-question framework focusing on value, rarity, imitability, and organization, the criteria used to evaluate an organization's resources and capabilities. Dimensions of VRIO