![]() A company’s competitive position can be improved by eliminating non-value-added activities from its processes.Įach step of the chain creates different amounts of value for the consumer.įor management, the primary application of the value-chain concept is that a company should critically examine it’s costs and performance at each stage, and decide, amongst other things, whether it ‘s best to carry out a particular stage in-house or externally. The value chain typically starts with suppliers, continues through the manufacturing process, and ends with aftermarket servicing. These activities include only actions that add value to the final output non-value added activities are excluded. ![]() A value chain is the sequence of activities required to transform an input into an output for the final customer. ![]()
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