Hello Students, For this Forum, launch the week three lesson and then read Chapters 3 & 4 in the textbook.
Value Chain Analysis Value Chain Analysis views the organization as a sequential process of value- creating activities.
Such an approach is very useful for understanding the building blocks of competitive advantage.
In competitive terms, value is the amount that buyers are willing to pay for what a firm provides for them.
And, a firm is profitable to the extent that the value that it receives exceeds the total costs involved in creating the product or service.
When using value chain analysis one needs to view the concept in its broadest context, i.e., without regard to the boundaries of a given organization.
That is, include suppliers, customers, and alliance partners.