Value Chain Analysis: Enhancing Business Performance

“VALUE CHAIN ANALYSIS-A TOOL FOR
ENHANCING BUSINESS PERFORMANCE”
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INTRODUCTION
Value Chain Analysis is an effective tool that helps to improve
performance of business. This study is focusing on evaluating the
contribution of value chain analysis in obtaining both differentiation
and cost advantages. In addition, Porter’s value chain model is being
discussed to help in understanding importance of primary and support
activities in improving performance.

DEFINING VALUE CHAIN ANALYSIS
(VCA)
• Value chain analysis can be defined as a
process to separate business activities in
primary and support activities.
• This analysis model is capable to help
firms to perform each action with
efficiency (Grant, 2010).
• This aspect is potent enough to ensure
improvement of business performance and
it helps to generate maximum revenue.

CONTRIBUTION OF VCA IN GAINING
COMPETITIVE ADVANTAGES
• VCA helps in choosing and
implementing effective strategies to
obtain maximum competitive advantages.
• Implementation of strategy related to cost
advantage helps to perform internal
activities at lower expense than rivals
(Sausman et al. 2015).
• Differentiation strategy implementation
helps to improve performance of business
activities more than rivals.