Write a note on scope of value chain analysis.
Answers
Hey mate here we go
*To create and sustain competitive advantage, it is essential to analyze and understand how various value activities interact.
*Value activities can be classified into two categories --
#Primary activities and support activities.
Primary activities can be classified into four categories --
Research and development,
Production,
Marketing and sales,
Service.
#Support activities include materials
Management,
Human resource management,
Firm infrastructure.
A value chain helps segregate the strategically relevant activities of a firm to understand the cost behavior of each activity. Strategic relevance could be in terms of the potential impact on the execution of cost leadership or differentiation strategies. By configuring the value chain appropriately and performing these activities effectively and efficiently, a firm can gain competitive advantage.
A firm influences the buyer’s performance by influencing its value chain. It does so by providing direct inputs, that is, products and services, to the customer. It also influences the buyer indirectly through its logistical system, sales force, applications engineering group, and order entry system. A firm creates value when it creates competitive advantage for its buyer.
The competitive advantage can be created in the form of lowering the buyer’s cost or raising the buyer’s performance. Value creation has to be accompanied by value communication and value capture. The relationship between value creation and value capture is influenced by the forces of industry structure such as the relative bargaining powers of buyers and suppliers. A firm that has a competitive advantage in the marketplace is able to create and capture value. Gaining sustainable competitive advantage is the main objective of many firms.
I hope this will helps you
mark my ans as brainliest