Value Chain Analysis
The value chain helps to analyze specific functions by which the firms can develop value and competitive benefits. The main activities include Inbound logistics like receiving, storing, inventory control etc, Operations like machining, assembly, packaging etc, Outbound logistics order completion, transporting, warehousing etc, Marketing and Sales which includes promotion, advertising, selling, pricing etc, Service like repair services, installation, customer support, training, upgrading etc. The support activities include Procurement, Firm infrastructure, Technology development and Human resource management. A company can create a cost advantage based on the value chain by lowering the cost of individual activities of value chain or by the value chain reconfiguration.