Value Chain Analysis, 2007
|Implementing agency(ies)||Action for Enterprise (AFE), Asian Development Bank (AsDB), Department for International Development (DFID), GIZ (formerly GTZ), IDRC, IFC, SDC, USAID|
|Date completed||August 2007|
Value Chain Analysis examines the full range of activities required to bring a product or service from its conception to its end use, the firms that perform those activities in a vertical chain and the final consumers for the product or service. The activities include design, production, marketing and support to get the final product or service to the end consumer.
Value Chain Analysis is sometimes used interchangeably with Subsector Analysis. Others differentiate with a Subsector Analysis examining all the firms, channels and markets related to a specific product or service and Value Chain Analysis focusing on a single vertical chain of firms leading to a particular consumer market. Value Chain Analysis also often includes additional analytical elements beyond Sub-sector Analysis such as inter-firm cooperation, governance and geographic coverage that extends to global markets.
Value Chain Analysis is used by development agencies to identify how poor people, small enterprises or other target groups can play a larger and more lucrative role in a particular value chain and how a value chain's structure or characteristics can be changed to enable it to grow in pro-poor ways. Value chain analysis is increasingly used to help develop a competitiveness strategy for a value chain or industry.
Documents included on the right hand side:
The "Handbook for Value Chain Research" written by Raphael Kaplinsky and Mike Morris for IDRC provides a detailed description for how to conduct Value Chain Analysis.
AFE's presentation from the SEEP AGM by Frank Lusby and Henry Panlibuton provides an overview of Value Chain Analysis and how it differs from Sub-sector Analysis.
SDC's "Synthesis of the first VCRD cycle" summarizes discussions by their community of practice on Value Chains in Rural Development on how to analyze value chains in rural areas.
Value Chain Analysis for Policy Makers and Practitioners by Hubert Schmitz of IDS for the ILO, 2005.
The ValueLinks Manual by GTZ, 2007, available here. The manual includes modules on selecting a value chain for promotion, analyzing a value chain and determining the chain upgrading strategy as well as modules on implementing and monitoring value chain development programs.
The FIAS, IFC "Moving Towards Competitiveness: A Value Chain Approach." (2007) This technical paper emphasizes how to use value chain analysis to develop policy recommendations.
See also other resources on Value Chains below and the entry on links to Value Chain resources on other websites.