💼Learn Value Chain Analysis: Where Your Margin Actually Comes From
Trace Porter's nine value-chain activities through a coffee company end-to-end, then run the same lens on your own employer until one specific margin leak becomes obvious.
Phase 1Reading the Nine Activities Behind Every Margin
Separate value chain from supply chain using Porter's nine activities
Value chain is not supply chain — and the difference is your margin
7 minValue chain is not supply chain — and the difference is your margin
Five primary, four support — the nine boxes that explain margin
7 minFive primary, four support — the nine boxes that explain margin
Where a $6 latte's margin actually comes from
7 minWhere a $6 latte's margin actually comes from
How support activities quietly run the chain
7 minHow support activities quietly run the chain
Phase 2Pricing the Coffee Chain End-to-End
Map a coffee company's chain and price each activity
Pick the company you'll map for the rest of the path
6 minPick the company you'll map for the rest of the path
Map your company's five primary activities in concrete sentences
7 minMap your company's five primary activities in concrete sentences
Add the four support activities — and how they cut across the chain
7 minAdd the four support activities — and how they cut across the chain
Estimate cost share and value share for each activity
7 minEstimate cost share and value share for each activity
Pick your top three suspects — and one will become Phase 4
8 minPick your top three suspects — and one will become Phase 4
Phase 3Linking the Chain to Generic Strategy
Link the chain to cost leadership and differentiation strategy
The CFO wants 8% out of every activity by Friday — what do you say?
8 minThe CFO wants 8% out of every activity by Friday — what do you say?
A consultant says 'just be the premium option' — what's wrong with that?
8 minA consultant says 'just be the premium option' — what's wrong with that?
A competitor matches you on price AND quality — how did they do it?
8 minA competitor matches you on price AND quality — how did they do it?
Software, services, and the parts of Porter's chain that don't fit cleanly
7 minSoftware, services, and the parts of Porter's chain that don't fit cleanly
Phase 4Finding the Leak in Your Own Company
Find one leaking activity in your own company
Write a one-page memo: where margin is leaking and what you'd do
25 minWrite a one-page memo: where margin is leaking and what you'd do
Frequently asked questions
- What is the difference between value chain and supply chain?
- This is covered in the “Learn Value Chain Analysis: Where Your Margin Actually Comes From” learning path. Start with daily 5-minute micro-lessons that build from fundamentals to hands-on application.
- What are Porter's five primary and four support activities?
- This is covered in the “Learn Value Chain Analysis: Where Your Margin Actually Comes From” learning path. Start with daily 5-minute micro-lessons that build from fundamentals to hands-on application.
- How do you actually use a value chain to find where margin is leaking?
- This is covered in the “Learn Value Chain Analysis: Where Your Margin Actually Comes From” learning path. Start with daily 5-minute micro-lessons that build from fundamentals to hands-on application.
- Is value chain analysis still useful for software and service companies?
- This is covered in the “Learn Value Chain Analysis: Where Your Margin Actually Comes From” learning path. Start with daily 5-minute micro-lessons that build from fundamentals to hands-on application.
- How does value chain connect to Porter's generic strategies?
- This is covered in the “Learn Value Chain Analysis: Where Your Margin Actually Comes From” learning path. Start with daily 5-minute micro-lessons that build from fundamentals to hands-on application.
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