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GM Drivers
Module: SU001.5
Section: problem

Startup Value Chain Framework

You're not building a product. You're taking ownership of a broken link.

What You'll Learn

This module shows you how to map the full arc of the problem you're solving - from origin to resolution - and identify where your startup creates the most leverage in that chain.

TLDR

  • startup value chain framework: map from raw input to money‑in; target leverage points with margin pools.
  • Choose tool, wedge, or platform; price to value created.
  • Design switching incentives for upstream/downstream players.
  • Prove one controlled slice before expanding.

Intro

Startups don't exist in a vacuum. Your product lives inside an ecosystem - and that ecosystem has stages, players, ownership, and friction. This module forces you to see the full sequence: from when a problem originates, to how it develops, to where your product actually intervenes. Then it pushes further: what happens after you succeed? Who owns the solution? What new challenges emerge?

Myths & False Signals

Value chain traps that blind founders.

  • Your product is the whole value chain — you're one link in a larger system.
  • You can ignore adjacent players — adjacent players become competitors or partners.
  • Value chains are static — they shift with technology, regulation, and customer behavior.
  • Capturing more of the chain means more value — controlling the right link matters more than controlling many.

Frequently Asked Questions

People Also Ask

Key Terms

Downstream

The cascade of effects or integrations triggered by your product.

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Friction

Anything that slows a user from getting value-signup, UX, pricing.

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