Final answer:
The company will analyze its value chain to identify its value-creating activities and formulate its strategy. This analysis helps the company understand areas where it can improve efficiency and differentiate itself from competitors.
Step-by-step explanation:
The company will analyze its value chain to identify its value-creating activities while formulating its strategy. By analyzing the value chain, the company can understand the different activities involved in creating value for its products or services. This analysis helps the company identify areas where it can improve efficiency, reduce costs, and differentiate itself from competitors.
For example, if the company identifies that its customer service is a value-creating activity, it can invest in improving customer service processes and training its employees to provide exceptional service. This can lead to increased customer satisfaction and loyalty, ultimately contributing to the company's overall success.
Additionally, the company will consider how each value-creating activity contributes to its competitive advantage. For instance, if the company's supply chain management is a key value-creating activity that allows it to deliver products faster and at a lower cost than competitors, it will focus on optimizing and leveraging that activity to maintain its competitive position.