Value chain analysis is a tool for examining all activities represented in the enterprise's value chain, which allows identifying segments where there is potential for improvement.
This procedure motivates the examination of each stage from the perspective of its contribution (positive or negative) to the value of the final product. Analysis of the CSC can contribute to the realization of certain forms of competitive advantage, including:
Differentiation of a product or service as a result of the involvement of significant resources (material, intellectual, etc.) for research, design, engineering and advertising aimed at distinguishing the product from competitors' offerings.
Minimizing costs by increasing the efficiency of each element in the enterprise value chain.
Minimization of costs
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Often, improving one of the four job seekers data package additional processes can have a positive impact on at least one of the core activities.
Let's consider the stages of the CSC analysis.
Highlight key processes
We have considered some aspects of the main processes above. However, we can analyze additional areas that are important components of the CSC model for a specific enterprise.
Explore each key process
Together with your team, you need to estimate the volume of each key operation. This stage plays a significant role in determining the enterprise's costs for product development. For example, when launching a bamboo toothbrush, you will inevitably face the need to invest in environmentally friendly raw materials.
Identify additional (auxiliary) processes
Here, it is important to focus on specific details, as they can tell a lot about the productivity of the production process and the quality of the product.
Conduct an analysis of each supporting (auxiliary) process
When analyzing an additional process, it is important to remember that it must be related to the main activities.
Process Analysis
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The study aims to determine the value and costs that supporting activities add to core processes.
Identifying potential for improvement
Recognizing potential improvements in the value chain depends on the competitive advantages that the company is aiming to achieve. This means, for example, that in order to achieve a cost reduction objective, each element of the VSC model must be analyzed for cost reduction potential. Individual components may not add tangible value within the scope of the target and should be eliminated to save money.