What is the Meaning of: Value chain | Concept and Definition of: Value chain

Meanings, definitions, concepts of daily use

The string string is a theoretical model that describes how the activities of a company are developed. According this concept of string, it is composed by several links forming an economic process: it starts with the raw material and goes up to the distribution of the finished product. At each link, a string is added, that is, in competition, the amount that consumers are willing to pay for a product or service.
Analysis of the value chain to optimize the process of production, insofar as can be seen in detail, to each approach, the operation of the business. The reduction of costs and the quest for efficiency regarding the use of resources are the major objectives of the contractor at the time of review the value chain. Thus, the company is able to increase its margin (the difference between the total and the cost of activities).
Furthermore, the study of the value chain can achieve a strategic advantage, because there is the possibility to generate a proposal for string be unique on the market.
Some scholars distinguish two subsystems in the conformation of the value chain. UNA demand chain, which encompasses the processes related to the creation of the application, and a supply chain, dedicated to meet demand in time and in the form.
It is also possible to distinguish between two types of channel activity. The primary activities are those that relate to the physical creation of the product and its transfer to the purchaser. Support activities, on the other hand, support the primary and include the participation of human resources, inputs and technology, for example.

Note: This translation is provided for educational purposes and may contain errors or be inaccurate.

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