Advantages of value chain analysis in cost management

  • It can apply for any type of business- manufacturing, retail or service, big or small.
  • With a value chain, efforts can be optimized, waste eliminated and profitability improved.
  • Value chains help breakdown all the activities that go into producing a good or service and understand areas of cost savings and differentiation.
  • Helps organizations to understand areas of cost savings and differentiation.
  • Helps organisations to understand how competitors create value and also in deciding whether to extend or outsource particular activities.
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