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Value Chain Alignment Matters.

June 5, 2012

I realize the title sounds textbooky. If we are not capable of learning from textbooks, why are we forced to read them throughout school? Michael Porter has spent a great deal of time discussing the value chain in his work and books. He points out the importance of aligning the chain around the competitive advantages of an enterprise. His books were written in the 80’s and 90’s before the current digital era. Yet the analysis he proposed to evaluate the competitive advantage and what to consider when aligning the value are even more valid today. Previously, one could argue there would have been time for an enterprise to adjust to an errant step. Today, many would argue a errant step spells doom. It is important to evaluate your value chain and how it supports your competitive advantage and compared to your main and horizon competitors.

Android chose poorly. They have spread the distribution too far, losing too much control. Meanwhile, Apple continues to own their distribution.

Is your business aligned to capture the value your competitive advantage offers? How does it compare to your competition? Have you ever asked yourself how your competition with inferior product, service and pricing can be doing so well? The answer lies in the value chain.

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