Value Chain Analysis: Find Your Edge by Mapping Your Activities
Value Chain Analysis maps a company's activities to find its competitive edge. Instead of a list of costs, it shows how each step adds value, revealing where you can lower costs or justify higher prices.
Value Chain Analysis deconstructs a company into its core activities to find its competitive edge. The mental model is to view each step—from logistics to marketing—not as a cost, but as a link in a chain that must add value. It helps pinpoint specific activities that allow you to charge higher prices or operate at a lower cost than rivals. The main footgun is confusing operational effectiveness (doing things well) with strategy (choosing different things).
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