Fashion Value Chain Analysis

Fashion Value Chain Analysis

Identify the main components of the business. This should include manufacturing and operational activities, order-taking, marketing, sales, delivery and customer support. Next to each component, list the crucial elements to improve.

Value chain is a chain of activities. Products pass through all activities of the chain in order and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities.

Meet people in each component/ department. Have them describe their department's current operations. Then charge them to create at least one strategy they believe can improve department activities. For example, the Human Resources department might devise a strategy for bettering recruitment and hiring.


Students have to investigate from the customer's perspective also. They should identify which "Value Elements" of each business activity customers consider critical to their needs. For example, if the activity is order taking, most customers would regard getting a swift answer to their request as a top priority.

Students have to study this value chain starting from retail outlet to merchandise to warehousing to manufacturing to raw material sourcing. This they have to do using research methods : survey, interview, field visits, observations etc. Each group has to pick one closest competitor of their brand and study the value chain of that competing brand.


Students must first visit their competing brand, study the 4 Ps, and then work backwards.
(Competitor analysis and Porter 5 forces analysis are all part of this)

valu