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This query is : Resolved
18 October 2013
what is value chain analysis????
18 October 2013
Hi
Refer: http://www.tutor2u.net/business/strategy/value_chain_analysis.htm
Thanks//VaibhavJ
Refer: http://www.tutor2u.net/business/strategy/value_chain_analysis.htm
Thanks//VaibhavJ
18 October 2013
1. Value chain analysis (VCA) is a process
where a firm identifies its primary and support
activities that add value to its final product
and then analyze these activities to reduce
costs or increase differentiation.
2. Value chain represents the internal activities a
firm engages in when transforming inputs into
outputs
where a firm identifies its primary and support
activities that add value to its final product
and then analyze these activities to reduce
costs or increase differentiation.
2. Value chain represents the internal activities a
firm engages in when transforming inputs into
outputs
18 October 2013
VCA is a strategy tool used to analyze internal
firm activities. Its goal is to recognize, which
activities are the most valuable (i.e. are the
source of cost or differentiation advantage) to the
firm and which ones could be improved to provide
competitive advantage . In other words, by looking
into internal activities, the analysis reveals where
a firms competitive advantages or disadvantages
are. The firm that competes through
differentiation advantage will try to perform its
activities better than competitors would do. If it
competes through cost advantage, it will try to
perform internal activities at lower costs than
competitors would do. When a company is
capable of producing goods at lower costs than
the market price or to provide superior products,
it earns profits.
firm activities. Its goal is to recognize, which
activities are the most valuable (i.e. are the
source of cost or differentiation advantage) to the
firm and which ones could be improved to provide
competitive advantage . In other words, by looking
into internal activities, the analysis reveals where
a firms competitive advantages or disadvantages
are. The firm that competes through
differentiation advantage will try to perform its
activities better than competitors would do. If it
competes through cost advantage, it will try to
perform internal activities at lower costs than
competitors would do. When a company is
capable of producing goods at lower costs than
the market price or to provide superior products,
it earns profits.
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