N's spirit Basic MBA > Deconstruction


Deconstruction of Value Chain happens when a company deals with significant environmental change.

Check list of Deconstruction

When Deconstruction is implemented, BCG that proposed this concept raise 5 points below

1. Which step in Value Chain generated less value compared with the cost?
2. Is the company's business a part of customer's Value Chain or whole of it?
3. Which step in Value Chain can be affected by network
4. Which assets of the company are most likely to be debt in the future?
5. What activities or abilities the company will need?

Examples of Deconstruction

Conventional Value Chain
Value Chain

Layer Master
Layer Master builds competitive advantages by focusing on specific value added activity like Intel, Microsoft or Shimano producing high-end bicycle

Deconstruction Layer Master

Orchestrator adds value by focusing on core value added activities like DELL.

Deconstruction Orchestrator

Market Maker
Market Maker occupies specific sales channel like household appliance discounters or agencies.

Deconstruction Market Maker

Personal Agent
Personal Agent is agency as navigator for consumers like Amazon.

Deconstruction Personal Agent

Industries in which Deconstruction happens

Industries in which there are strong business models
Industries in which there are many regulations
Industries running in specific areas
Industries having high possibility of technology innovation
Industries having inefficient tasks


<< >>
What is the corporate strategy?
Ansoff Matrix
PPM (Product Portfolio Management)
GE's Business Screen
Value Portfolio
Pattern of Global Strategies
Porterfs Corporate Strategy
Strategy by Positioning in an Industry
Blue Ocean Strategy
Five Forces Analysis
Advantage Matrix
Strategic Positioning Analysis
Value Chain
Service Profit Chain
Resource Based View
Seven S
PEST Analysis
PLC (Product Life Cycle)
Technology Life Cycle
MOT (Management of Technology)
Economic Analysis of Business
Experience Effect
3C Analysis
SWOT Analysis
PDCA Cycle
Seven Domains
Delta Model
Process of Environmental Analysis
PMS (Product Market Strategy)
Framework of Competitor Analysis
Examples of KSF


N's spirit Basic MBA > Deconstruction

Copyright (c) N's spirit. since 2004 All rights reserved.