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Asked by prateek on :Feb. 28, 2018

Explain the meaning of Value Chain Analysis?

Explain the meaning of Value Chain Analysis?

Explain the meaning of Value Chain Analysis?

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Chiranjibi Mar. 08, 2018

Value chain analysis 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.

Value chain analysis refers to separate activities which are necessary to underpin an organization's strategies and are linked together both within and around the organization. Organizations are much more than a random collection of machines, money and people. Value chain of a manufacturing organization comprises of primary and supportive activities.

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