Value Chain Analysis

Question 1

value chain?

Answer 1

identifies the relationships between company’s resources, activities and processes that link the business together and create profit

Question 2

two generic strategies?

Answer 2

• cost leadership
• differentiation

Question 3

value chain when seeking cost leadership?

Answer 3

seek cost advantages throughout value chain

Question 4

value chain when seeking differentiation?

Answer 4

seek quality advantages throughout the value chain

Question 5

cost drivers?

Answer 5

factors the cause costs to be incurred

important for cost leaders trying to reduce costs

Question 6

value drivers?

Answer 6

potential sources of value

important for differentiators seeking to generate quality advantages