Value Chain-Performance Matrix

The Value Chain-Performance Matrix is a 2x2 matrix used to evaluate the performance of a business based on the value chain activities it performs.

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

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

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

  1. High Value, Low Performance: Activities that are high in value but low in performance, such as customer service or product development.
  2. High Value, High Performance: Activities that are high in value and high in performance, such as marketing or sales.
  3. Low Value, High Performance: Activities that are low in value but high in performance, such as administrative tasks or accounting.
  4. Low Value, Low Performance: Activities that are low in value and low in performance, such as research or development.

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

The Value Chain-Performance Matrix is a 2x2 matrix used to evaluate the performance of a business based on the value chain activities it performs. The value chain is a concept developed by Michael Porter that describes the activities that a business must perform in order to create value for its customers. The Value Chain-Performance Matrix is used to evaluate how well a business is performing each of these activities and how it can improve its performance.

The matrix is divided into four quadrants. The top-left quadrant is for activities that are high in value but low in performance. The top-right quadrant is for activities that are high in value and high in performance. The bottom-left quadrant is for activities that are low in value but high in performance. The bottom-right quadrant is for activities that are low in value and low in performance.

The goal of the Value Chain-Performance Matrix is to identify activities that are high in value and low in performance, so that the business can focus its resources on improving those activities. It is also used to identify activities that are low in value and high in performance, so that the business can reduce or eliminate those activities.


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What templates are related to Value Chain-Performance Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Value Chain-Performance 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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