Value Beyond Price: End User Value Chain Analysis

Abstract

Uniqueness does not lead to value addition, if it is not valuable to the consumer. A supplier’s value chain activity is inherently dependent on the satisfaction it provides to consumers in addressing their needs. This is particularly important since the supplier’s product is the input in the consumers’ value chain. Therefore, this article presents a methodological framework of value‐chain concept and analysis that is tailored to revealing and understanding consumer needs by ensuring that the consumer is the focus of the analysis. The framework proposes to view the consumer beyond just a buyer by understanding its own value chain within which the product is fits. This is achieved by defining the consumption chain and assessing the consumers experience with the product. It therefore goes beyond analyzing the factors affecting the availability and prices of food products to more subtle value elements including acceptability, utilization, physical and nutritional quality of food. Following that, it introduces the consumer into the supply chain by realigning production processes based on identified consumer requirements. The framework focuses on getting the product value chain to focus on providing consumer value by identifying areas where activities can be adjusted to have a greater influence on the consumption chain.