Business is all about taking raw materials, adding value to them and turning them into a useful service or product for customers. This practice is mostly seen in manufacturing business. However, in the service sector also, the same practice is relevant. Here knowledge, equipment and time are the inputs that create services for the customer. In this article, we will discuss about the strategy tools and strategic opportunities that come with the use of value chain analysis.
An Idea of Value Chain Analysis
Value Chain Analysis is a useful device that is used to identify the procedure to create the greatest value for the market, i.e., for customers. The analysis helps in realizing ways to increase the extent of the value created by the company for the market.
The customers that a company has are not essentially external stakeholders. Peers, subordinates and even bosses of a manager can be called customers.