The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving cover image

290: Design the value chain you need | value chain analysis (Strategy Skills classics)

The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving

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Investing in the Value Chain

There's a big push around the world to move away from coal fired stations to CCGT, which is a type of a gas station. The thing with gas stations is that they are cheaper to build, faster to get up running but because you run them at a very, very high capacity utilization, the maintenance costs go up. So if you move from non-standardized to standardized designs, whereby you're not investing so much in designing, then your design costs go down and you're building costs going up. You've got to decide where the market is going, what regulation is coming up to figure out where profits are going to go. And then you've got to tell your client to

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