Value Chain Analysis Example: WalMart's Value Chain Analysis

The best way to understand Value Chain Analysis is to look at some examples of Value Chain Analysis and start drawing your own. You can now modify the Value Chain Analysis example below using Visual Paradigm's online Value Chain Analysis tool.

What is Value Chain Analysis (VCA)?

Value chain analysis is a technique that helps a business identifies the primary and support activities that add value to its final product and to find out how to reduce costs or increase differentiation through based on the activities identified.

How to perform Value Chain Analysis?

You can perform Value Chain Analysis easily with Visual Paradigm Online. Here are several quick steps:

  1. Create a Value Chain Analysis diagram.
  2. Identify the primary and support activities involved in your business and write them down as the headers of those compartments.
  3. Identify the cost drivers for each activity. For a more labor-intensive activity, cost drivers could include how fast work is completed, work hours, wage rates, etc.
  4. Identify links between activities - reducing costs in one area may reduce cost in another. Identify opportunities to reduce costs.
  5. Once your diagram is complete, you can save it (File > Save as) to our cloud repository for future access. You can also export your work into image (JPG, PNG, PDF, SVG, etc) and share it with your co-workers.

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