Tools & Models

Porter’s Value Chain Model

Porter's Value Chain Model is a framework that helps analyze a company's internal processes and activities to identify areas where value can be added and costs can be reduced. As a tool for business strategy, it helps us understand the sources of value creation in a company and how that company can improve its competitiveness. The model separates primary and support activities that a company performs in order to deliver a product or service to its customers.

Porter’s Value Chain Model
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The package

What the download contains

Porter’s Value Chain Model — download package
  1. The UNITE Navigator, offering an overview of all UNITE models
  2. Porter's Value Chain
  3. The UNITE Approach to Value Stream Mapping to deepen your analysis
  • Helps to structure business activities in order to facilitate the assessment of each of them reg. their cost and value
  • Introduces teh categorisation into Primary Activities and Support Activities

The case

Why we use it

Understanding the diverse ways a business expends its limited resources can be a considerable challenge. Porter's Value Chain Model attempts to make this process easier by dividing everything a business does into two baskets: primary activities and secondary activities. According to the model, primary activities include all the work and investment necessary for the business to bring value to its customers. Primary activities include: 1. Inbound Logistics 2. Operations 3. Outbound Logistics 4. Marketing and Sales 5. Service The secondary activities in Porter's Value Chain Model are: 1. Procurement 2. Technology Development 3. Human Resource Management 4. Infrastructure

The mechanics

How It Works

The Value Chain Model unpacks all of your business activities following these steps: 1. Identify the primary and support activities in your value chain (e.g., procurement, human resource management). 2. Assess the cost and value of each activity: Evaluate the cost of each activity and the value it adds to the product or service. 3. Identify areas for improvement, based on the cost and value analysis. 4. Develop an action plan for implementing changes to the value chain. 5. Implement and monitor.

The purpose

What is the goal of the model?

The Value Chain Model 's goal is to help you understand all the activities that occupy your business's resources and identify areas of potential savings, development, and innovation.

Beyond the download

Use this model in Axibra, not only in a slide deck

The PDF is yours to keep. But a model changes something only when it touches the work — and that is what Axibra does with it. The model becomes the structure your decisions are made in, and every outcome stays traceable back to the input it came from.

In practice

Where this model does its work

For years we applied this model by hand, in client engagements. It now runs inside Axibra.

Digital transformation

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See how it works

Thousands of organizations leverage the UNITE models — these are some of them …

Stefan F. Dieffenbacher

From here on

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Stefan F. DieffenbacherFounder & Managing Director of Digital Leadership

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