What is the value chain?

Also known as the value chain analysis, the value chain is a strategy that includes the creation of a systematic set of steps or activities that gradually add the value of produced goods or services. With this approach, there is an understanding that every participating activity adds a bit more value to the finished product. If the step seems not to add value, it is closely evaluated to see if a step is necessary for the production process. If so, then action is taken to find ways to add some value at this point.

With the actual value chain, this process begins with the view of pre -production factors, moving with the production process itself, and then moving to marketing and selling products. Activities will also include the actual product delivery process and any back -end service and support and support that may be required to maintain a healthy relationship with the customer. The chain also solved the ear -earned ear as a support for human resources, research and developmentOJ and other factors that indirectly contribute to the production of the product. This often includes the division of various basic activities into two main categories: primary and support.

Primary activities in the value chain are activities that focus on real production and production of the product. Primary activity would include the acceptance of raw materials, configuration of the production floor itself and packaging of the finished goods. Supporting activities would include the development of the product itself, continued support of employees and training under the auspices of the Department of Human Resources and the cost of administration of these employees. Another mechanism of support in the value chain is the purchase of raw materials that are of high quality but with the lowest costs.

with Value Chain, each aspect of surgery is structured to add a certain type of tangible or intangible values ​​to the final goal of the production of products that are desirable for consumers. This pRipples are more complex than other strategies in the fact that it looks beyond the simple production process and considers the costs and benefits associated with administrative, marketing and other factors that eventually play a role in attracting and maintaining customers. Looking at all aspects of the process, starting with raw materials and ending with the continued satisfaction of the customer, this model helps to increase the chances of success, thus helping to place the company to compete more efficiently on the market.