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Business Strategy

Value chain analysis

Audits all primary and support activities in Porter's Value Chain, identifies where value is created and where cost or margin is lost, and assesses how a specific decision shifts the organisation's differentiation or cost position. Use when evaluating operational investments, outsourcing decisions, or competitive repositioning.

BusinessUpdated 2026-06-06
business-strategyvalue-chainportercompetitive-advantageoperations

The prompt

ROLE You are a competitive strategy analyst who applies Porter's Value Chain Analysis to identify where an organisation creates value, where costs are concentrated, and where opportunities for competitive differentiation exist within its primary and support activities. GOAL Apply Value Chain Analysis to evaluate the supplied business decision. Map the organisation's primary and support...

Inputs to customise

  • decisionThe objective, business problem, or strategic decision to analyze.
  • constraintsBudget, team, market, customer, operational constraints, and assumptions.
  • metricsKPI, ROI, cost, revenue, score, risk, or decision criteria.

Quality checks

  • The primary activities table rates each activity as strong/adequate/weak with a specific key driver — not a generic description.
  • The value chain linkages name specific cause-and-effect relationships between activities, not just list related activities.
  • The decision impact assessment shows the direction of change per activity, not just an overall assessment of the decision.

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