Value Chain
Strategic Dimension
Maximize value at each stage of the production process with deliberate make or buy decisions.
Strategic Dimensions: Differentiation • Market Segmentation • Value Chain • Marketing Channel • Customer Relationships • Revenue Model • Pricing • People • Technology • Partnership • Organizational Structure • Business Process • Finance • Political Advocacy
Purpose
Value chain strategy focuses on optimizing and adding value at every step of the production process. This entails making informed decisions about whether to produce components in-house or outsource them. By examining each component of the value stream, businesses can pinpoint where efficiencies can be achieved or value can be added. Understanding the full value chain ensures that companies make strategic choices to enhance overall product quality, reduce costs, and deliver greater value to customers, setting them apart in the competitive landscape.
Notes
The value chain is about identifying the components that make up the entire value stream.
Rules / Constraints
We have not (yet) defines rules or constraints.
“Strategy requires thought, tactics require observation.”
(Source: Max Euwe)