This Value Chain Analysis diagram depicts the process of evaluating each activity in a company's value chain to identify areas for improvement. When you conduct a value chain analysis, you must consider how each step adds or subtracts value from your final product or service. This, in turn, can assist you in gaining a competitive advantage. The first step in performing a value chain analysis is to understand all of the primary and secondary activities that go into creating your product or service. If your company sells various products or services, you must go through this process for each one. After identifying the primary and secondary activities, the next step is determining the value each activity adds to the overall picture.
