In his book, porter first time introduced value creation concept. 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. Free value chain templates for word, powerpoint, pdf. Pdf on jan 1, 2014, john mcgee and others published value chain find, read and. Primary activities inbound logistics operations outbound logistics marketing and sales service 3. The concept was created around 1985 by michael porter, harvard business school professor. The value chain the term value chain was used by michael porter in his book competitive adva n tage.
Competitive advantage grows fundamentally out of value a firm is able to. Professional porter value chain model ppt 16x9hd and 4x3 aspect ratio, retina ready, full editable. All these activities can be represented using a value chain. Visualise the presentation full screen or download it as a. Aug 23, 2018 the strength of porters value chain analysis is the focus on the systems and activities with customers as the central principle, rather than on departments and expense categories. Creating and sustaining superior performance porter 1985. Overigens was michael porter na het publiceren van zijn value chain van mening dat deze te statisch van aard zou zijn. Value chain presentation template free powerpoint templates. The following is an example of the value chain for copier manufacturer.
The value chain templates are easy to use and free. All competitive advantage resides in the value chain. Porters value chain activities diagram in powerpoint 2010 if you are preparing a marketing plan or business strategy for your organization and need the popular porters value chain diagram in your powerpoint slides, then here we will show you how to design a simple but nice enoguh value chain diagram using shapes. The value chain the term value chain was used by michael porter.
Porter 1 suggests that value chain analysis can be a useful approach in developing strategy. Start listing the activities which adds value to the organization with this ready to use value chain analysis template. Dec 16, 2016 value chain analysis using porters model 1. The likely benefits of extended value chain integration include. Scribd is the worlds largest social reading and publishing site.
It links systems and activities to each other and demonstrates what effect this has on costs and profit. Porters value chain presentation 1 linkedin slideshare. 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. Jul 24, 20 value chain refers to the functional activities of a business that add value to 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.
Furthermore, the developed value chain will be outlined, and discussed in detail. Value chain analysis describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization. The nine main stages of the value chain are grouped together as five primary activities and four support activities. Michael porter discussed this in his influential 1985 book competitive advantage, in which he first introduced the concept of the value chain. Imhmed 2012 study the impact of the value chain activities porters five forces on the competitive performance of the industry of libya. Porter five forces analysis industry analysis definition, advantages, and criticism. You can find michael porter diagram designs and presentation slide designs with graphics relevant to value chain and competitive advantage as well as other powerpoint templates for. Strategy is on industry structure and competitor analysis in a variety.
This download comprises a value chain analysis template contained in an ms excel spreadsheet developed on the basis of porters framework. Porter value chain model ppt templates free download now. Edraw is an easy to use value chain software coming with readymade value chain templates that make it easy for anyone to create beautiful and professionallooking value chain for pdf. T he value chain analysis describes the activ ities the organ ization performs and links them to the organizations competitive pos ition. Porters value chain activities diagram in powerpoint 2010. Value chain michael porter was the first person who introduced the term value chain in his book competitive advantage. Those tasked to do the job encounter difficulties in many areas including the gathering of data, identifying functions or tasks which might add real or perceived value, and creating then applying the plan. Low cost and fullservice airlines both compete in the airline industry, for example, but they have very different value chains embodying significant differences in. Our pdf value chain templates are easy to reuse and free. 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. Porters value chain analysis by michael porter marketing tutor. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits. Competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firms cost of creating it.
Download our free value chain templates in software package to. Thus, the traditional value chain with upstream and downstream functions makes the extended value chain a reality see figure 4. Value chain analysis and competitive advantage prescott c. Allcompetitive advantage resides in the value chain. In his book competitive advantage 1985, michael porter explains value chain analysis. He is credited for creating great works, porters five forces analysis, competitive strategy, national diamond and value chain. It is sometimes known as porters value chain as first described by michael porter in his 1985 bestseller competitive advantage.
Download powerpoint templates with value chain diagrams. Porter saw the idea as a way of observing how businesses view the process of what they do when competing in the marketplace to deliver products or services. Porters value chain analysis by michael porter toolshero. 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. Value chain analysis free download as powerpoint presentation. The value chain analysis template below shows the very basic model of the porter s value chain analysis process. The relationship between value chain analysis and competitive. A value chain is a set of activities that an organization carries out to create value for its customers. Michael porter defines value chain as a representation of a firms value adding activities, based on its pricing strategy and cost structure. It is a set of activities that an organization carries out to create value for its customers. Several frameworks have emerged and have been used to study.
According to porter, it consists of primary activities and support activities, all of which add value to the products or services offered by the business. A firms value chain and the way it performs individual activities are a reflection of its history, its strategy, its. According to michael porter, value chain consists all. Value chain definition value chain analysis competitive. The main downside of creating a value chain diagram through analysis is that it involves a lot of work. A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. Porter proposed a generalpurpose value chain that companies can use to examine all of their.
Porter s value chain business management erp as your. Porters value chain analysis free management books. It also shows the role of competitive scope in affecting the value chain. The value chain template in powerpoint format includes three slides. The conclusion addresses the main points of the findings, and reinforces the usefulness of the value chain in the he setting. Edraw can also convert all these templates into powerpoint, pdf or word templates. Porter defines value chain as a representation of a firms value adding activities, based on its pricing strategy and cost structure.
Recommendations for undertaking a value chain cost analysis are made. Download edraw and view all templates in editable mode. Value chain for strategic management accounting in higher. This presentation draws on ideas from professor porters books and articles. A distinctive value chain tailored to the value proposition making clear tradeoffs, and choosing what not to do choices across the value chain that fit together and reinforce each other strategic continuity, with continual improvement in realizing the strategy. It tracks the impact made on a product or service by every process from its start to delivery. Seep preevent presentation 26 value chain analysis can help to reveal linksbetween producers, exporters and global markets identify constraintsall along the chain to competing in the marketplace. Value chain analysis value chain competitive advantage. Michael porters value chain is a strategic business planning tool used to identify where competitive advantage arises in your business. 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 allows a more structured approach of assessing where in the organization true value is created and where costs can be reduced in order to boost the margins. Oct 15, 2019 michael eugene porter is an american academic known for his theories on economics, business strategy, and social causes. Building a thriving and extended utilities value chain. Value chain analysis has been applied in various fields, from the time the concept of.
Concept of value chain international journal of business and. The smart grid has a key role to play as a valuechain integrator in the extended value chain. Porters value chain born in 1947 harvard professor wrote book, competitive advantage 2. The value chain from competitive advantage, by michael porter. 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, transformation.