Market Value Chain: Key Step to Finding Product-Market Fit

Dat Tran, Dorn Carranza & Cara Barnes

OPEN 2016, Portland, Oregon

March 4-5, 2016

Competitive advantage

•  Who’s in your market?

•  Who can help you improve •  Quality

•  Efficiency

•  Differentiation

-Value-Chain-

VALUE

Market players

Sourcing Production Distribution Use

Credit: noun project

Market landscape

Tangible action

Source: scottberkun.com; G. Pinchot

Significant positive impact.

To create and bring into use sustainable new products, processes, services, and ways of doing business.

Bringing innovation into use

§  Availability

§  Affordability

§  User acceptability

§  Adoption

Reaching end-users (or customers)

Value chain process

1. Initial mapping

3. Revise & Upgrade 2. Research

Research/Interview

Product

Credit: noun project

§  Who? §  How many? §  What? §  How much? §  How?

What value chain can do

§  Identify constraints – Recent changes?

– Expected & unexpected future changes?

– Market nature/dynamics?

§  Identify opportunities – Value-adding activities?

–  Improving local value chain?

Value chain analysis

•  Quality •  Efficiency •  Differentiation

Credit: noun project

COST VALUE

Value Chain Mapping

OPEN 2016

Portland, Oregon

March 4-5, 2016

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1. List market players for each category

§  Government sector & networks

§  Business sector & networks

§  Social sector & networks

§  Informal sector networks

§  Others

2. Place key players along value chains

Sourcing Production Distribution Use

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3. Fill in market players according to

§  Primary value chain

§  Supporting value chain

§  Rules & regulations value chain

Primary value chain

Rules & Regulations value chain

Supporting value chain

4. Fill in as many details as possible for primary value chain players

Primary value chain

Rules & Regulations value chain

Supporting value chain

5. Fill in strengths & weaknesses of key primary value chain players if known

Example value chain map: Infant HIV diagnostic in Zambia

Ministry of Health

Ministry of Finance

UNITAID

Elizabeth Glaser Pediatric AIDS Foundation

Clinton Health Access Initiative Medicins Sans Frontieres

Centralized laboratories

Supporting Value Chain

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Primary Value Chain

Ministry of Commerce, Trade and Industry

Pharmaceutical Regulatory Authority

Prequalification by WHO

Zambia Public Procurement Authority

WHO guidelines for EID HIV

Rules and Regulations Value Chain