Exercise – Value Chain Analysis

This exercise asks you to apply Porter’s Value Chain to Colorado Ricardo Mountain Bikes.

The Scenario: Colorado Ricardo Mountain Bikes

Colorado Ricardo Mountain Bikes was founded by Ricardo Francisco, a keen off-road cyclist who grew frustrated with bikes breaking down under the strain of the Colorado mountains. After years of trial and error, he built a bike tough enough to survive the terrain and named it the “Colorado Ricardo”. Word spread quickly among local riders, and Ricardo gave up his day job to build and sell bikes full-time from a small workshop outside Denver.

Ricardo is considering an e-mountain bike, which will need new battery and motor components from suppliers he has never worked with before, while keeping the hand-building process that has always been the source of his bikes’ durability.

Your task: Using Porter’s Value Chain, identify one primary activity and one support activity where Colorado Ricardo could add the most value or reduce the most risk as it plans a move into e-mountain bikes.

Porter's Value Chain: primary and support activities

Once you have drafted your own answer, compare it with Marketing Teacher’s suggested answer.