What are advantages and disadvantages of chain of markets?
Answers
The primary goal and advantage of a value chain, and therefore value chain analysis, is to create or strengthen a competitive advantage. Through analyzing the five primary value chain activities, a company can ensure that the value it's creating exceeds the cost to create that value.
The five value chain activities are:
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
While there are many advantages of conducting a value chain analysis, the disadvantage of conducting this type of analysis is that sometimes a company's overall strategy and vision is lost when its operations are broken down into segments.
Creating efficiencies in each of a company's value chain activities is important, however, the value chain doesn't do a good job of linking each activity in the chain together. It's possible to lose sight of how the activities relate to each other.
-> benefits of chain market
1.specialise in particular product 2.stores can cater to the needs of people in different localities
3.works only on cash basis
4.it does not require many sales personnel
5.uniform price in all branches
-> detriments of chain market
1.they may not attract customers
2.product quality price etc. are decided by controlling office
3.absence of credit sales
4.indiscriminate opening of branches without taking into account.
5. buying potentials of each place may result in loss
Hope it helps !!!!