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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1336 |
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Also, distribution channels have a big impact on the firm’s value activities.
The value chain analysis facilitates to quantify customer power and supplier power by calculating the percentage of total profits that can be recognised to each stage in that series. This calculation can help out firms indentify ways to develop linkages with both their suppliers and their customers to reduce costs, boost differentiation, or both...
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An organisation that can do these things better than its competitors creates a sustainable competitive advantage.
The first step is to identify its internal value chain activities, the firm should first look for discrete activities that create value in fundamentally different ways. When identifying value chain activities, the firm should take a broad view of the organization's activities...
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