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Value Chain Analysis:

 Value

                As we know that product or service price, quality and its useful functions all are very important for its buyers and sellers. That all creates its value and that’s the reason every seller or producer giving more attention to improve the quality and to reduce the price and make their product more use full. 

                In the modern days there are many products in the market they have many functions and their prices and quality are too much better than their earlier product models. The common example is our smart phones which have phone services, camera, torch battery and radio facilities and many more useful functions. So the product phone is not just a phone it’s a mini computer know which makes your life easier. That’s all due to value chain analysis. The Customer demands and the producer will all make possible those creations.

The Value Chain Analysis is a strategic planning process through which a producer can make improvement in his product or serves through the assessment of competitive advantage. The process shows how to reduce the cost of the product and provide better quality to the customer with very limited resources. The activities the companies use from their internal departments are research and development, design, production, marketing, distribution and customer services. Whenever all the internal services are improved the company makes it possible for its customer to provide them very efficient and effective are services and products according to their reasonable budgets and with improved quality.

That all activities which help the management to make the better production value possible are known as value adding or value creating activities and the chain of all the activities are known as the value chain. The assessment process of the complete value chain is known as value chain analysis. That complete process is consisting of three different activities they are as follows:

1.       Primary activities.
2.       Supporting activities.
3.       Final Production of products.

The Supporting activities are based on the supporting operations like human resource, inventory management, Information technology support, production plan management and contract management. These all supporting activities helps the primary activities which are performing under independent departments like R&D, product designing, manufacturing, marketing and distribution and finally the customer support services department. The product goes through these entire departments and finally came in the hands of consumer or customer in a very better quality and in price.


The Value chain analysis is a strategic process in which we make the complete assessment of the product or service and identify the product functions its creation purposes and its impact on the general market and industry. The identification helps us to determine the resource which helps us to make it more useful. After the critical assessment and identification process, the determination of the supporting and primary helpful activities came and the determination in operational activities helps the production or manufacturing departments to make it possible with a unique and better value a price for the customers. The product distribution and marketing helps the business to make a proper value chain.

Comments

  1. Value chain analysis is a way to visually analyze a company's business activities to see how the company can create a competitive advantage for itself. Here are some Value Chain Analysis Tools to accurately perform value chain analysis effectively.

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