Question

The main objective of value chain analysis is to identify stages of the value chain where the firm can:

A. Justify increases in the price of the product or service.
B. Increase value to the customer or reduce cost in some way.
C. Outsource production to other producers.
D. Improve efficiency.

Answer 1

The main objective of value chain analysis is to identify stages of the value chain where the firm can increase value to the customer or reduce cost in some way.

Step-by-step explanation:

The main objective of value chain analysis is to identify stages of the value chain where the firm can increase value to the customer or reduce cost in some way. By analyzing each stage of the value chain, a firm can identify opportunities to improve efficiency, increase customer satisfaction, and ultimately enhance its competitive advantage. For example, a firm may identify a stage in the value chain where it can improve the quality of its product or find a cheaper supplier, both of which can increase value to the customer or reduce costs.