Simple value chain analysis tool

Empower your business, facilitating organization-centric value chain analyses like never before with our free and easy-to-use diagram maker.

An easy-to-use tool with many templates

Rich templates and technical symbols
EdrawMax has a vast collection of pre-made templates and specialized technical symbols. Integrate industry-specific elements into your analyses to enhance clarity and precision. Simplify complex concepts and expedite the creation process while ensuring your value chain analysis is comprehensive and tailored to your organization's needs.
Secure cloud storage and advanced integration
Collaborate and access your value chain analyses from anywhere, with the added convenience of Google Drive integration. Rest easy knowing your data is safeguarded by the highest level of SSL certification, ensuring top-tier security for your valuable information.
Ask EdrawMax AI for help
Explore the future of value chain analysis with EdrawMax AI. Engage with this AI tool to have dynamic conversations, gain insights, or even make diagram analysis. Your value chain strategies would be more effective with this built-in AI chatbot.
Streamline analysis with drag-and-drop ease
Experience hassle-free diagram creation with EdrawMax's user-friendly interface. You can finish your value chain diagram without technical knowledge with drag-and-drop functions. With the auto-formatting features, you don't have to worry about arranging your elements.

Value chain analysis tool for everyone

Business Analysts
Identify areas of improvement in companmy operation to streamline processes and reduce costs.
Marketing Managers
Understand the sources of competitive advantage and identify opportunities.
Supply Chain Managers
Optimize the flow of goods and services from raw materials to the end consumer.
Financial Analysts
Assess companies' financial performance and cost structures.
Operations Managers
Enhance the production process and improve supply chain management.
Environmental Consultants
Identify environmental impacts throughout a product's lifecycle.

Why teams choose EdrawMax?

Seamless Teamwork
EdrawMax facilitates real-time collaboration, allowing team members to work together on diagrams and share feedback instantly, fostering teamwork, and accelerating project progress.
Enhanced Efficiency
With its intuitive interface, pre-made templates, and extensive symbol libraries, EdrawMax enables teams to create professional-quality diagrams quickly, saving time, reducing effort, and increasing productivity.
All in One
EdrawMax allows for making 210+ types of diagrams including flowcharts, mind mapps, Gantt charts, timelines and more, streamlining workflows and eliminating the need for multiple software, enhancing convenience.
Improved Communication
Use visually compelling diagrams to convey complex ideas, facilitating clear and concise communication within teams and with stakeholders, boosting understanding and decision-making processes.
What is
the value chain analysis

Value chain analysis is a strategic management tool that helps businesses understand the various activities they perform to create value for their customers and analyze how each activity affects their overall competitive advantage. It involves breaking down a company's activities into primary and support activities, identifying their strengths and weaknesses, and examining how these activities interact and contribute to the overall value creation process.

The primary activities in a value chain analysis include inbound logistics (receiving and storing input materials), operations (transforming inputs into finished products or services), outbound logistics (storing and delivering the final products to customers), marketing and sales (promoting and selling products), and customer service (providing aftersales support).

The support activities include procurement (acquiring inputs for the primary activities), technology development (improving processes and creating innovative products), human resource management (recruiting, training, and developing employees), and firm infrastructure (administrative functions and organizational structure).

Benefits of
the value chain analysis

Value chain analysis offers a multifaceted range of benefits. Firstly, it serves as a powerful tool for cost reduction. Organizations can pinpoint cost drivers and inefficiencies by dissecting the entire process into its constituent activities. Armed with this knowledge, they can strategically cut costs in areas that do not directly contribute to value creation, thereby enhancing profitability.

Moreover, it provides a pathway to competitive advantage. Value chain helps companies to identify what activities are truly value-adding and optimize them. This means businesses can focus on what they do best, differentiate themselves from competitors, and carve out a distinctive niche in the market.

Furthermore, the value chain model can be used to inform decision-making. It provides a holistic view of an organization's operations, allowing managers to make data-driven decisions, allocate resources effectively, and prioritize activities that align with their strategic objectives.

Value chain
v.s. Porter's Five Forces

Porter's Five Forces and the value chain are two fundamental concepts in strategic management, but they serve distinct purposes in analyzing a company's competitive position and its internal operations.

Porter's Five Forces assesses the industry's attractiveness by examining the bargaining power of suppliers and customers, the threat of new entrants, the threat of substitute products or services, and the intensity of competitive rivalry. This framework helps businesses understand the forces shaping their industry and devise strategies to navigate or influence them. While the value chain focuses on the internal activities of a company. It dissects a firm's operations into primary and support activities, identifying areas where value is added and costs are incurred.

In summary, Porter's Five Forces analyzes the external competitive landscape, and the value chain delves into the internal workings of a company.

Types of value chain analysis

Firm-level Value Chain
Industry Value Chain
Global Value Chain

Five steps to do a value chain analysis

  • List all primary activities in your business, from inbound logistics to marketing and sales.
  • Identify supporting functions like HR, technology, and procurement that facilitate primary activities.
  • Assess costs associated with each activity and determine how they contribute to value creation or differentiation.
  • Identify activities where your company excels or lags behind competitors to pinpoint competitive advantages or weaknesses.
  • Develop strategies to optimize cost-effective activities and leverage strengths while addressing weaknesses for enhanced value delivery and competitive positioning.

What our users say

Brian Sulivan
As a business consultant from Canada, I've tried several tools for value chain analysis, but EdrawMax stands out amongst all. This value chain analysis software is a game-changer for my logistics company. Its drag-and-drop interface made creating complex diagrams a breeze, even for a non-tech person like me. The abundance of templates and technical symbols was a lifesaver, allowing me to customize my value chain analysis precisely.
Linda MacCohan
EdrawMax is hands down the best value chain analysis software my company has ever used. Its versatility to start from scratch or use templates was perfect for our needs. And the export options, especially the ability to export in Visio's VSDX, added an extra layer of professionalism to our reports. The integration with cloud storage and the security measures in place for data storage gave us peace of mind. I recently recommended this to a project management team, and they also have positive words for this diagramming tool.
Katie Bank
EdrawMax has transformed the way we approach value chain analysis. As a project manager, I was amazed by the AI-powered assistance that this value chain analysis software offers. The ability to chat with Edraw AI helped us brainstorm new ideas and refine our strategies effectively. Moreover, the cloud storage and integration with Google Drive facilitated easy collaboration with our remote team. I give EdrawMax 10/10 when it comes to creating amazing diagrams.

FAQs about value chain analysis software

  • An example of a value chain application could be a manufacturing company analyzing its production and logistics process from raw material sourcing to product distribution to customers.
  • EdrawMax is the best value chain analysis software. It facilitates creating, visualizing, and analyzing value chain processes.
  • The SCM (Supply Chain Management) value chain system encompasses the activities involved in sourcing, production, distribution, and customer service.
  • Yes, the value chain is a tool used to analyze and visualize the sequence of activities.
  • The five primary activities of a value chain are inbound logistics, operations, outbound logistics, marketing and sales, and customer service.
  • Porter's value chain analysis is a framework for evaluating a company's internal activities to identify sources of competitive advantage and optimize operational efficiency.
  • Porter's three generic strategies are cost leadership (being the low-cost producer), differentiation (offering unique products or services), and focus (targeting a specific market niche).
  • The three types of value chains are the industry value chain, the firm-level value chain, and the global value chain. Each focuses on different aspects of value creation and delivery.
  • Value chain analysis helps organizations understand their internal operations, optimize processes, identify sources of competitive advantage, and make informed decisions to enhance efficiency and profitability.