Value Network Analysis

Definition of 'Value Network Analysis'


The analysis of the members and the interactions of these members within a value network. Value network analysis is usually done through visualizing the relationships using a chart or web. The participants are evaluated both individually and on the benefit they bring to the network. Value network analysis looks at the business as a whole, including financial and non-financial aspects of operations.

Investopedia explains 'Value Network Analysis'


Value networks are made up of members and their interactions while producing a product or providing a service. These connections are extremely important in identifying strong companies as well as finding a company's potential risks. For example, if a network member has a large influence, the loss of that member could devastate the entire group. This is an example of intrinsic value analysis because there is value, but it is hard to place a price on.



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