Using Value-Chain Analysis to Discover Customers' Strategic Needs
David W. Crain and Stan Abraham
David Crain, a marketing and strategy consultant, is visiting professor of marketing at Whittier College, CA, and former Director of Marketing at Fluor Corporation (firstname.lastname@example.org). Stan Abraham is professor of strategy and entrepreneurship at Cal Poly Pomona (scabraham@ csupomona.edu) and author of Strategic Planning: A Practical Guide for Competitive Success (Thomson South-Western, 2006).
ere is a ﬁve-step method for discovering a customer’s particular strategic needs based on a unique application of value-chain analysis. Performing this analysis on important customers helps identify high-value new business opportunities. It …show more content…
Step 2: How to construct a customer’s value chain
First, recognize that you need to construct both internal and external value chains for a particular customer. The internal value chain follows Porter’s original concept, which includes value-added steps from purchasing to distribution as well as support functions such as R&D and human resources. It’s tempting to let this generic diagram serve as the customer’s value chain, but it must be tailored to the particular customer. To produce a useful value-chain