Value Chain Analysis: Management Research Paper

University
Value Chain Analysis
Student’s Name
Date
Professor’s Name
Program of Study
Value Chain Analysis
The value chain is one of the concepts that organizations can utilize to have a competitive advantage over the close rivals in the market. However, such organizations must keep costs of operations low and understand the value that they deliver to customers. According to Flanagan, Lepisto, and Ofstein (2018, p. 87), a value chain is a model of assessing the various business processes and figuring out ways that a business can have a competitive advantage through a focus on ways that a company can develop maximum value in products or services (Flanagan et al. 2018, p. 96). As such, a business can maximize the value of business operations from conception to distribution as a way of gaining a competitive advantage. Therefore, the value chain can entail a combination of business processes in producing the desired products and services.
In the current era of business competitiveness, value analysis is one of the strategies of minimizing costs and promoting business control. Therefore, the approach can ensure that business embarks on all its functions at minimal prices without diminishing performance or overall quality. An organization has an opportunity of eliminating all the unnecessary costs that have no value to the appearance or overall quality of a product. According to Zhang (2017, p. 56), the core objective of the value chain is to identify the functions of a product and provided the needed services at low costs. Notably, value chain analysis is a process that an organization utilizes in determining its support activities at minimal costs while enhancing differentiation. Arguably, companies focus on their various internal operations before expanding their focus to consider their competitive edge within an industry.
The primary activities of value chain analysis include:
Outbound logistics- They entail all the activities of collecting, storing, and distributing the various outputs, including material handling, delivery of vehicle operations, and order processing.
Marketing and sales- they are activities to inform potential customers about products and services. As such, organizations induce buyers to pu...