Dilemma

I'm stuck. I can't for the life of me figure out if I should include a value chain analysis and / or a PEST analysis in the thesis?

The more I read about the value chain, the less I understand. Basically, it's a model for assessing how value is created within a firm - I get that. But what to include? Porter's original includes everything with regards to a given firm...but I don't think this will help me? What I would like to do, would be to use a simplified value chain - to show the number of steps from basic input to the end user? Something like this:

(you'll probably have to view it larger)

I've pretty much decided to forego the PEST analysis: the political factors do not play any role in the market (except for the price on subscriber lines bundled in with the DSL solutions - but that's another story, imho?), and the economic, social and technological aspects would, at best, be guesswork on my part: no energy to go out and find sources at this point. Just want to wrap it all up for a to-go order. :-)

Any thoughts / ideas, oh cream-of-the-crop, über-amazing readers...? ;-)