Value Chain Analysis for PowerPoint, Google Slides and Keynote

A value chain is a strategic analysis tool aimed at a detailed study of an organization’s activities for the purpose of strategic planning. The idea of the value chain was proposed by Michael Porter in his book “Competitive Advantage” to identify sources of competitive advantage through the analysis of individual company activities. The value chain “divides a company’s activities into strategically important activities in order to examine costs and existing and possible means of differentiation. A company’s competitive advantage arises as a result of performing these strategic activities better than its competitors. The total value that a firm provides to its customers is measured by total revenue, that is, the number of units sold and the assigned price. The goal of each strategy is to create total value in excess of total cost, that is, to maximize total margin. Value, and therefore margin, is created by strategic important activities that use inputs, human resources and technology to fulfill their function. At each stage, the output of activities is information (e.g., number of orders produced), productivity and scrap rates, and financial performance. All phases of a company’s activities are divided into core and supporting activities.