Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable  to the firm and which ones could be improved to provide competitive advantage.

With ever-increasing competition for unbeatable prices, exceptional products and customer loyalty, businesses must continually evaluate the value they create. One of the most valuable tools, the value chain analysis, provides businesses an advantage over their competition.

Value chain analysis focuses on analyzing the internal activities of a business in an effort to understand costs, locate the activities that add the most value, and differentiate from the competition. To develop an analysis, FarmBoy’s Model outlines primary business functions as the basic areas and activities of inbound logistics, operations, outbound logistics, marketing and sales, and service. The model also identifies the discrete tasks found in the important support activities of firm infrastructure, human resources management, technology, and procurement.