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In step 1, need natin na malaman lahat ng mga activities that plays a role in creating the business
product or services.

From the previous slide, there are 2 types of activities in a business, which is primary and support
activities. And sa 2 types of activities, may mga iba’t ibang types na under it or sub-activities, like sa
primary, merong operations, logistics, services, etc.

Sa mga nabanggit na sub-activities, we need to dig deeper and ponder every detail.

For example, sa Marketing and Sales, we ask “what are the resources needed to accomplish the said
activities”, or maybe “how many employees is in the Marketing Team”

So kailangan na malaman natin every detail ung mga activities sa business. And we do that because as
what they said earlier: The goal of value chain analysis is to recognize which activities are the most
valuable to the firm and which ones could be improved to provide competitive advantage.

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Next, we need to know the cost of each activity.

Since nakadetail na ung mga activities natin from step 1, it becomes easier for us to calculate the cost.
Kinoconsider natin ung costs when carrying out each activity, di lang in terms of monetary value ng mga
resources, but also the time, labor, manpower and anything na gagamitin at gagastusin ng isang
business.

After we calculate the cost, we can determine which parts of the value chain are costing the business
the most money and which part cost less.

Having this information, we can learn which of the activities are cost effective. Furthermore, we can
decide what we can do next to make most of the activities a cost effective as much as possible.

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Third is about the customers perceive value

When deciding to buy a product/ avail a service, customers always go to a product OR services that they
think that are valuable at most to them. So, we need to determine what our end customers perceive as
valuable.

There are many ways we can obtain this data, like conducting a survey OR interviews. We can ask the
customer about their feedbacks, their views on our business para malaman natin ung pineperceive
nilang value sa product natin. Aside from it, we can use the financial reports, invoices and contracts as a
data to determine the business’ transactional volumes, profit margins and third-party arrangements.

If we identify these values, we can adopt on it and opens up the opportunity to market our product in a
way that motivates them to buy it.
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Fourth, is to compare our business value chains to competitor’s value chain

Magagawa natin yon by making the competitor’s value chain as our benchmark/reference point.

Ung goal po dito is to pass the benchmark line and maintain on it through different ways: the process,
the strategy, and the performance.

The process: we need to make our process structure and operation much effective compared to the
competitor’s

The strategy: we need to create a powerful strategy that will increase our success compared to the
competitor’s

The performance: We need to have a better revenue, market performance, customer and expert
reviews and ratings, and so on, compare to the competitors

And if we able to do that, the business is sure to have an upper hand on the market.

Lastly, dito po alam na natin na may clear na tayong idea to our internal cost and kung anong mga
pagbabago ang maaari nating gawin to have A competitive advantages to our competitors