Value Chain Analysis Matrix

The Value Chain Analysis Matrix is a strategic tool used to analyze and optimize the various activities within a company that contribute to its competitive advantage. It breaks down the primary and support activities to identify areas for improvement and cost reduction.

At a very high level, the Value Chain Analysis Matrix is used in the context of business, strategy, operations.

Value Chain Analysis Matrix quadrant descriptions, including examples
Want to try this template?
Other Templates

What is the Value Chain Analysis Matrix?

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

  1. Primary Activities: Activities directly involved in creating and delivering a product, e.g., Inbound Logistics.
  2. Support Activities: Activities that support primary activities, e.g., Human Resource Management.
  3. Value Added: Areas where the company adds value to the product, e.g., Enhanced Customer Service.
  4. Cost Drivers: Areas where the company incurs costs, e.g., High Procurement Costs.

What is the purpose of the Value Chain Analysis Matrix?

The Value Chain Analysis Matrix is a powerful framework for understanding the internal activities of a business. By dissecting the company's operations into primary and support activities, businesses can identify where value is added and where inefficiencies exist. This analysis helps in pinpointing areas for cost reduction, process improvement, and differentiation from competitors.

Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities encompass firm infrastructure, human resource management, technology development, and procurement. By evaluating these activities, businesses can understand how each contributes to the overall value and competitive advantage.

For example, a company might find that its inbound logistics are highly efficient, but its marketing and sales efforts are lagging. By focusing on improving marketing strategies, the company can enhance its market presence and drive sales growth. Similarly, by optimizing support activities like technology development, businesses can innovate and improve their product offerings.

Use cases for the Value Chain Analysis Matrix include strategic planning, operational efficiency assessments, and competitive analysis. Companies can use this matrix to align their activities with their strategic goals, streamline operations, and gain a better understanding of their strengths and weaknesses.

Want to try this template?

What templates are related to Value Chain Analysis Matrix?

The following templates can also be categorized as business, strategy, operations and are therefore related to Value Chain Analysis Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

How can I use Value Chain Analysis Matrix in Priority Matrix?

You can get Value Chain Analysis Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Value Chain Analysis Matrix, and get free access to lots of other templates, at Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.