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Disadvantages of Value Chain Analysis

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Value Chain (Porter)

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Ahmed Mohammed Ibrahim Kafi
3
Ahmed Mohammed Ibrahim Kafi
Innovation Consultant, Sudan

Disadvantages of Value Chain Analysis

🔥 Disadvantages of Value Chain Analysis (VCA) are:
  1. By focusing too granularly on micro details, the broader strategic view can get lost.
  2. It can be time-consuming and complex in terms of data collection, analysis, and interpretation.
  3. Likewise, adapting and updating the analysis to changing business environments is also time-consuming.
  4. Value chain analysis may miss some opportunities for improvement if it's not combined with other types of business analysis.
⇨ Any additional cons of VCA?

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  Jaap de Jonge
1
Jaap de Jonge
Editor, Netherlands
 

Another Downside of Value Chain Analysis

Another disadvantage of VCA a la Porter is that:
5. VCA was originally aimed at physical product manufacturing companies and the terminology used may be unusual for other types of companies such as service providers or government organizations.

 

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Special Interest Group


More on Value Chain (Porter)
Summary Discussion Topics
topic How to apply the value chain? Activities and Linkages
topic Value Chain Management versus Supply Chain Management?
topic Value Chains ⇨ Value Networks
topic Value Chain for Services Industry
topic Inventory Replenishement in Value Chain
topic Value Chain versus Diamond Model
topic How to Deal with Conflicts Between Marketing and Operations
topic Value Chains and Industries
topic Value Chain in Legal Services
topic Procurement in the Value Chain Approach
topic Customer Value Chain (CVC)
👀Disadvantages of Value Chain Analysis
topic Order Management in Porters Value Chain?
Special Interest Group
Knowledge Center

Value Chain (Porter)



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