What is a Value Chain and why is it importantSolutionA value

What is a Value Chain and why is it important?

Solution

A value chain in marketing is nothing but the set of activities performed by the firm in particular industry for the purpose of delivering a valuable product or service for market. Example - Choco Mize created a value chain by offering customized products and attractive packaging design. This company focus on maintaining its value chain by continuously improving the value of the product they offer to the customers.

Value chain is important because it helps the company to lead its competitive advantage and increase profits. It helps the firm to exceed the value created to the cost of creating that value.

It create long lasting impression in customers and result in creating customer loyalty. Customer loyalty is the tendency based on the behavior and attitude to prefer one brand over the other due to its quality, customer service, performance, etc. It provide good customer experience and result in customer satisfaction.