Mapping the product into the value chain

A product never exists in isolation. It operates within a network of technologies, partners, and user processes known as the value chain. Understanding this environment is essential for shaping a strategy that works in practice, not just in concept.

The case of Netflix illustrates this clearly. When transitioning from DVD rentals to streaming, the company had to assess every link in its value chain:

• Inbound logistics meant securing licensing rights and forging partnerships with production houses.
• Operations required building media production capacity and investing in technology for streaming.
• Outbound logistics relied on cloud infrastructure to deliver content globally.
• Marketing and sales leaned on data-driven recommendations.
• Service depended on continuous technical support and fresh content to retain subscribers.

Support activities such as talent acquisition, legal agreements, and infrastructure development tied these elements together. Only by mapping these dependencies could Netflix anticipate obstacles, such as limited bandwidth or licensing challenges, and plan strategically for long-term success.^[1][2]

When teams ignore the value chain, they risk building products that look attractive on paper but cannot operate effectively in the real world. Mapping how a product fits into its value chain ensures opportunities are realistic, constraints are visible early, and investments are directed where they can create the greatest impact.