Ianey and associates Inc VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness Reduce your costs improve your market share Bottom Line - improve overall profitability!
Ianey and associates Inc VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness Reduce your costs improve your market share Bottom Line - improve overall profitability!
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Ianey and associates Inc VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness Reduce your costs improve your market share Bottom Line - improve overall profitability!
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
and your company? Copyright aney & associates Inc. November 2002
Ianey & associates Inc
TabIe of Contents VaIue Chain AnaIysis Competitive InteIIigence - what is it? VaIue of Competitive InteIIigence Different tooIs and techniques of Competitive InteIIigence VaIue Chain AnaIysis VaIue Chain Components DeveIoping your vaIue chain How a firm can use vaIue chain anaIysis
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VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer.
Ianey & associates Inc
VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness
Ianey & associates Inc
VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness Reduce your costs
Ianey & associates Inc
VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness Reduce your costs Improve your market share
Ianey & associates Inc
VaIue Chain AnaIysis Jalue Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer. It can: Increase your competitiveness Reduce your costs Improve your market share Bottom Line - improve overall profitability!
Ianey & associates Inc
Competitive InteIIigence - what is it? "The best way to differentiate your company from the competition, the best way to put distance between you and the crowd is to do an outstanding job with information. How you gather, manage and use information will determine whether you win or lose" Bill Gates, 1999
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Competitive InteIIigence - what is it? Competitive Intelligence is: Information about opportunities and threats
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Competitive InteIIigence - what is it? Competitive Intelligence is: InIormation about opportunities and threats Leveraging information/knowledge to improve competitive position of companies and local industries
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Competitive InteIIigence - what is it? Competitive Intelligence is: InIormation about opportunities and threats Leveraging inIormation/knowledge to improve competitive position oI companies and local industries Forecasting of changes about the economic environment
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Competitive InteIIigence - what is it? Competitive Intelligence is: InIormation about opportunities and threats InIormation which makes companies and local industries more competitive Forecasting oI changes about the economic environment Actionable recommendations from analysis of the environment
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Competitive InteIIigence - what is it? It is the total knowledge a company or a local industry possesses about the environment in which it competes gathered in an ethical manner
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Market InteIIigence vs Competitive InteIIigence Market Intelligence: Tells a company about the marketplace
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Market InteIIigence vs Competitive InteIIigence Market Intelligence: %ells a company about its environment Supply and demand for its products
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Market InteIIigence vs Competitive InteIIigence Market Intelligence: %ells a company about its environment Supply and demand Ior its products Drivers that influence demand
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Market InteIIigence vs Competitive InteIIigence Market Intelligence: %ells a company about its environment Supply and demand Ior its products Drivers that inIluence demand ho the buyers and suppliers are
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Market InteIIigence vs Competitive InteIIigence Market Intelligence: %ells a company about its environment Supply and demand Ior its products Drivers that inIluence demand Who the buyers and suppliers are Overall economic outlook for the product
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Market InteIIigence vs Competitive InteIIigence arket Intelligence: %ells a company about its environment Supply and demand Ior its products Drivers that inIluence demand Who the buyers and suppliers are Overall economic outlook Ior the product Competitive Intelligence: Helps a company understand what its competitive position is in a specific market - weaknesses and strengths
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Business Pyramid Business Intelligence road environmental scanning, market research and analysis
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Business Pyramid usiness Intelligence Competitive Intelligence Assimilates all Competitive Intelligence road environmental scanning, market research and analysis
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Business Pyramid usiness Intelligence Competitor Analysis Competitive Intelligence Individual Competitor ProIile Assimilates all Competitive Intelligence road environmental scanning, market research and analysis
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VaIue of Competitive InteIIigence A study by the University oI North %exas Iound that CI Companies outperIormed other companies by all three key Iinancial measures 1 Sales arket share Earnings per share 1 Steven iller, Editor Competitive Intelligence agazine 1995 study
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Different tooIs and techniques Five basic tools : Strategic Analysis
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Different tooIs and techniques Five basic tools : Strategic Analysis Product-oriented Analysis
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Different tooIs and techniques Five basic tools : Strategic Analysis Product-oriented Analysis Behavioural Analysis
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Different tooIs and techniques Five basic tools : Strategic Analysis Product-oriented Analysis ehavioral Analysis Financial Analysis
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Different tooIs and techniques Five basic tools : Strategic Analysis Product-oriented Analysis ehavioral Analysis Financial Analysis Customer Oriented Analysis
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Different tooIs and techniques Five basic tools : Strategic Analysis Product-oriented Analysis ehavioral Analysis Financial Analysis Customer Oriented Analysis Value Chain Analysis
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VaIue Chain AnaIysis It can be developed for individual competitors or an entire industry
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VaIue Chain AnaIysis It can be developed Ior individual competitors or an entire industry It can be for the product as it relates to end customers or customers within a chain
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VaIue Chain AnaIysis Cost Factors Why costs differ? Why swings in profitability? Efficiencies and inefficiencies Influence Competitor`s costs Nature and source of advantage
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The Three Tiers There are three tiers of Value Chain Analysis
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The Three Tiers %here are three tiers oI Value Chain Analysis Internal Cost Analysis
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The Three Tiers %here are three tiers oI Value Chain Analysis Internal Cost Analysis A firm or a sector needs to understand its own value chain in order to compare to its competitors
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The Three Tiers %here are three tiers oI Value Chain Analysis Internal Cost Analysis Internal Differentiation Analysis
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The Three Tiers %here are three tiers oI Value Chain Analysis Internal Cost Analysis Internal Differentiation Analysis A firm or a sector then needs to identify the processes that distinguish its products or services from that of its competitors
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The Three Tiers %here are three tiers oI Value Chain Analysis Internal Cost Analysis Internal DiIIerentiation Analysis Vertical Linkage Analysis
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VerticaI Linkage AnaIysis gaining and sustaining a cometitive advantage requires that a Iirm understand the entire vaIue deIivery system, not just the ortion oI the vaIue chain in vhich it articiates. SuIiers and customers and suIiers` suIiers and customers` customers have roIit margins that are imortant to identiIy in understanding a Iirm`s cost/diIIerentiation ositioning, lecause the end use customers uItimateIy ay Ior aII the roIit margins aIong the entire vaIue chain. ShanI and Govindarajan (I993)
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VaIue Chain Components R&D Design Production Marketing Distribution Service Supplier Value Chain Firm Z Value Chain Distribution Value Chain Buyer Value Chain Disposal Value Chain E n d - U s e
C o n s u m e r
P a y s
I o r
P r o I i t
a r g i n s
% h r o u g h o u t
t h e
V a l u e
C h a i n Primary Activities Support Activities Service Service Service Service Value Chain Analysis lor Assessing Competitive AJvantage CMA HanJlook
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DeveIoping VaIue Chains Value Chain Analysis requires expertise in more than one area
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DeveIoping VaIue Chains Value Chain Analysis requires expertise in more than one area Competitive intelligence is to be gathered ethically
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DeveIoping VaIue Chains Value Chain Analysis requires expertise in more than one area Competitive intelligence is to be gathered ethically And then developing a systematic process for capturing, analyzing it and disseminating the intelligence and developing the appropriate strategies to enhance your competitiveness.
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How a firm can use VaIue Chain AnaIysis Three useful strategic frameworks have been identified for value chain analysis:
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How a firm can use VaIue Chain AnaIysis Three useful strategic frameworks have been identified for value chain analysis: Industry Structure Analysis
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How a firm can use VaIue Chain AnaIysis Three useful strategic frameworks have been identified for value chain analysis: Industry Structure Analysis Core Competencies
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How a firm can use VaIue Chain AnaIysis Three useful strategic frameworks have been identified for value chain analysis:\ Industry Structure Analysis Core Competencies Segmentation Analysis
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MichaeI Porter's Five Forces ModeI Michael Porter (1980, 1985) developed the five forces model. Five factors influence the profitability of a firm Bargaining power of suppliers Bargaining power of buyers Threat of substitute products or services Threat of new entrants Intensity of Competition
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Bargaining Power of SuppIiers/Buyers For Suppliers this includes: Input differentiation Supplier concentration Volume Cost relative to total dollars
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Bargaining Power of SuppIiers/Buyers For Buyers this includes: Buyer concentration Volume Integration
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Entry Barriers Economies of scale Product Differences Brand Identity Access to distribution Cost advantages Government policy
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VerticaI AIIiances Value Chain analysis can show opportunities for participants within the chain that can have an immediate effect on your costs
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ReaI Life ExampIes SWATCH IKEA FedEx AB originated Beef to L.A. retail stores Agricultural chemicals sold in the US Midwest
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BibIiography CMA Value Chain Analysis for Assessing Competitive Advantage Canadian Institute for Competitive Intelligence SCIP - Society of Competitive Intelligence Professionals email address scipedmtelus.net Competitive Intelligence Magazine