Capability-Value Chain Matrix

The Capability-Value Chain Matrix is a 2x2 matrix used to identify and prioritize capabilities that will create the most value for a business. It helps to identify the capabilities that are most important to the success of the business, and to prioritize them accordingly.

At a very high level, the Capability-Value Chain Matrix is used in the context of business, marketing, finance.

Capability-Value Chain Matrix quadrant descriptions, including examples
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What is the Capability-Value Chain Matrix?

A visual explanation is shown in the image above. The Capability-Value Chain Matrix can be described as a matrix with the following quadrants:

  1. Core Capabilities: Core Capabilities are essential to the success of the business, such as customer service, product development, and marketing.
  2. Competitive Capabilities: Competitive Capabilities give the business an edge over its competitors, such as innovation, cost management, and brand recognition.
  3. Exploitable Capabilities: Exploitable Capabilities can be used to create new products or services, such as data analysis, artificial intelligence, and machine learning.
  4. Non-Value Adding Capabilities: Non-Value Adding Capabilities do not add value to the business, such as administrative tasks, compliance, and customer support.

What is the purpose of the Capability-Value Chain Matrix?

The Capability-Value Chain Matrix is a 2x2 matrix used to identify and prioritize capabilities that will create the most value for a business. It helps to identify the capabilities that are most important to the success of the business, and to prioritize them accordingly. The matrix consists of four quadrants, each representing a different type of capability. The four quadrants are:

  • Core Capabilities: These are the capabilities that are essential to the success of the business. Examples include customer service, product development, and marketing.
  • Competitive Capabilities: These are the capabilities that give the business an edge over its competitors. Examples include innovation, cost management, and brand recognition.
  • Exploitable Capabilities: These are the capabilities that can be used to create new products or services. Examples include data analysis, artificial intelligence, and machine learning.
  • Non-Value Adding Capabilities: These are the capabilities that do not add value to the business. Examples include administrative tasks, compliance, and customer support.

The Capability-Value Chain Matrix is used to identify and prioritize the capabilities that will create the most value for the business. It helps to focus resources on the capabilities that are most important to the success of the business, and to prioritize them accordingly.


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What templates are related to Capability-Value Chain Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Capability-Value Chain Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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