What are the main aspects of the value chain where are substantial differences in the cost of rival companies within an industry can occur?

The three main areas in the value chain where significant differences in the costs of competing firms can occur include what?? the nature and make-up of their own internal operations, the activities performed by suppliers, and the activities performed by wholesale distribution and retailing allies.

How value chain can be source of competitive advantage for any company?

Competitive advantage in either cost or differentiation is a function of a company’s value chain. A company’s cost position reflects the collective cost of performing all its value activities relative to rivals. Each value activity has cost drivers that determine the potential sources of a cost advantage.

What is the purpose of the value chain?

A value chain is a business term describing the full range of iterative activities a company uses to create a product or a service. The purpose of value-chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost.

What is a company’s value chain?

The term value chain refers to the various business activities and processes involved in creating a product or performing a service. A value chain can consist of multiple stages of a product or service’s lifecycle, including research and development, sales, and everything in between.

How does the competitive strategy affect the value chain?

Organizations design competitive strategy based on industry structure. Those competitive strategies determine value​ chains, which determine business​ processes, which determine IS requirements.

How firms analyze their value chain?

Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation. Value chain represents the internal activities a firm engages in when transforming inputs into outputs.

What is the difference between a company’s internal value chain and the industry value chain?

The industry value chain includes all of the value-creating activities within the whole industry, beginning with the basic raw material and finishing with the delivery of the product. The internal value chain of a company includes all the value creating activities within that specific firm.

What are the benefits of value chain?

Value chains help break down all the activities that go into producing a good or service and understanding areas of cost savings and differentiation. With a value chain, you can optimize efforts, eliminate waste, and improve profitability.

What is the difference between value chain and supply chain?

To recap: the Supply chain is the process between producing and distributing the product, dealing with the suppliers and logistics of getting the product to market; the Value chain is a set of activities carried out by the company which maximises the competitive advantage.

What is the difference between the value chain and value added products?

On the other hand, value chain implies the series of business operations in which utility is added to the goods and services offered by the firm so as to enhance customer value.
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Comparison Chart.
Basis for Comparison Supply Chain Value Chain
Concept Conveyance Value Addition

How do business models differ from the use of a value chain?

The Business Model (BM) identifies the way the company returns profit from the activities, resources, channels, partnerships… that deliver the product, while the Value Chain identifies the sequence of activities, from sourcing to marketing and sales, that deliver the product while returning a “Margin” to the company.

How do supply chains for service organizations differ from supply chains for manufacturing organizations?

Specifically in the manufacturing industry, supply chain design requires a great deal of focus on physical product and a broader supplier base. Service firms, on the other hand, typically have little need for physical inputs other than office supplies, and often work with a much smaller group of suppliers.

How does value chain enhance customer value?

Value is key to business success. Delivering value to customers = Increased acquisition, retention and advocacy, and delivering value to the business = Better margins and increased profitability.

What is the difference between a value chain and a supply chain quizlet?

A value chain is a series (chain) of events that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service. A supply chain is a network of suppliers, distributors, and retailers that participate in the production of a product.