The Role And Basic Framework Of Value Chain Analysis

According to Potter's view, every enterprise is a collection of all kinds of value activities that are designed, produced, sold, sent and played a supporting role in products.

Obviously, Potter focuses on analyzing the business activities of enterprises from the perspective of individual enterprises.

With the passage of time, the theory of value chain has also been developed. The new value chain view holds that every product (or service) has to experience numerous independent and interrelated activities from its initial raw materials to the ultimate consumers, and the carrier of these activities is called homework.

Each job must consume certain resources, and at the same time form a certain value added, pfer to the next job, until finally realize the income of the enterprise through the customer's cognition, this value pfer system becomes the value chain.

Value chain is generally constituted by industry. Any enterprise is only a part and chain of an industry's value chain. At the same time, the enterprise can also be decomposed into multiple unit value chains, and the value of the enterprise runs through the two dimensional space of the enterprise's own value creation operation and the enterprise's external value pfer operation.

From the perspective of strategic cost management, the occurrence of enterprise cost and its

With the symbiotic relationship, all costs can be apportioned to every value activity. Value chain analysis can derive the development strategy of enterprises, and this strategy will have a significant impact on the cost management of enterprises.

Therefore, value chain analysis provides a basic tool for enterprise cost analysis, conforming to the idea of strategic cost management, expanding the scope of understanding of cost, helping to control cost effectively and improving enterprise competitive advantage, and become an important part of strategic cost management system.

Internal value chain analysis.

Through the analysis of the internal value chain of enterprises, we can confirm what the value activities of enterprises are, what kind of distribution they are in, what position they are in the entire industry value chain, and compare the cost of the value activities of enterprises with their contribution to the value of products, determine the reasonableness of their occurrence, optimize the operation chain, eliminate unnecessary value-added operations as far as possible, improve the operation efficiency of value-added operations, reduce the occupation and consumption of resources, and enhance the competitiveness of enterprises.

Competitor value chain analysis.

In the industry, competitors often produce similar products. The value chain of competitors and the value chain of enterprises are in the parallel position in the industry value chain.

By analyzing the value chain of competitors, knowing the cost of competitors and comparing with their own cost, we can get the status of relative cost of enterprises, and then determine the competitive strategy to foster strengths and circumvent weaknesses and strive for cost advantages.

industry

Analysis.

Strategy

It often breaks through the enterprise's own value chain, puts the enterprise in the industry value chain, and understands the dependence between the enterprise and the suppliers and sellers from the strategic height, so that the enterprise can establish a strategic alliance with the upstream and downstream to reduce the cost. At the same time, based on the analysis of the value of the whole industry, enterprises can fully understand the cost, income and asset return rate of each activity activity, distinguish the competitiveness of various activities, and guide enterprises to implement outsourcing, merger and integration strategies in the existing market, so as to realize the reconstruction of the value chain, fundamentally reduce costs and cultivate competitive advantages.