RESULT OBTAINED
03 · Value chain
Value chain: locate value, control and dependency before choosing where to play
What must be established
A useful analysis leaves its controls visible.
- 01
Define the buyer outcome and the chain boundary.
- 02
Separate activity, actor, flow and control right.
- 03
Test which position changes access, economics or dependency.
Decision checkpoint
Make the next choice explicit.
DECISION SUPPORTED
Where is value created, captured and controlled along the route to the buyer?
DELIVERABLE TO RETAIN
A sourced map of activities, actors, flows and strategic control points.
NEXT ITEM TO INVESTIGATE
DependenciesExplore →Set the decision boundary
Map the steps needed to create and deliver the buyer outcome, including information, physical, contractual and financial flows. The boundary should match the decision, not merely the organisation chart or an industry label.
- Decision owner
- Scope and horizon
- Comparable alternatives
Make evidence and calculation inspectable
For each activity, distinguish who performs it, who pays, who sets conditions and which dependency applies. Preserve the period and source because channels, roles and control rights can change quickly.
- Source and date
- Unit and calculation
- Known uncertainty
Keep a reopening rule
Use the map to compare entry positions, make-or-partner choices and exposure to bottlenecks. Update it when an actor, interface, rule or route-to-market condition changes the option’s economics or access.
- Material signal
- Decision effect
- Owner and review date
Application protocol
Turn the method into a reviewable decision record.
The page is complete only when another reviewer can reproduce the boundary, trace the evidence and understand what would change the conclusion.
Frame before measuring
Name the owner, decision, alternatives, unit, geography and horizon before collecting figures. This prevents a convenient source or familiar category from silently defining the problem.
- Decision and owner
- Comparable options
- Unit, boundary and horizon
Separate observation from judgement
Record every observation with source, date, method and unit. Keep transformation rules, scores and weights apart from the evidence so that disagreement can target the right layer.
- Observed evidence
- Calculation convention
- Assumption and confidence
Plan the reopening rule
State the signal, threshold, owner and review date that would reopen the choice. A robust conclusion is conditional and operational; it is not made permanent by a polished score.
- Material signal
- Decision threshold
- Owner and review date
Resources
Reuse the method and check its foundations.
- UK Government, The AQuA Book (opens in a new tab)Reference used to document assumptions, scope and the limits of market analysis. Useful for making market structure, actors and constraints explicit in a comparable analysis.
- OECD, Competition Assessment Toolkit (opens in a new tab)Reference used to document assumptions, scope and the limits of market analysis. Useful for making market structure, actors and constraints explicit in a comparable analysis.
01Explicit scope
Unit, horizon and boundaries are visible.
02Qualified evidence
Source, date, method and confidence are recorded.
03Sensitivity tested
Weights and assumptions that reverse the result are known.
04Review planned
Signal, threshold, date and owner are named.
RETURN TO THE DECISION SYSTEM
See the canonical definition of marketing strategy→