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1. How can value-chain analysis help identify a company’s strengths and
Value chain analysis helps point out an organization’s weaknesses and strengths
through the evaluation of the each activity that adds to the creation of value and
competitive advantage (Zamora, 2016). An organization can identify what it core
competencies are and what services should be outsourcing by looking into its benefits,
costs and potential improvements. For instance, low brand awareness and lack of
customer loyalty possess an s a weaknesses to the organization while reliable supplier’s
posse as strength for the organization. Hence, it is important for an organization to
conduct a value-chain analysis in order to understand how to increase customer
satisfaction, improve its processes, enhance differentiation and minimize costs.
The following steps are followed while conducting a value-chain analysis: (Zamora,
1. Recognizing the key and base activities of the value chain
Key activities also known as primary activities generate value for the
consumer directly. These activities include; after sales service, production
and distribution. Base activities also known as support activities on the other
hand ease the facilitation of key activities. They include; human resources
management, procurement and technology development.
2. Examine the value and cost of every activity.
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