1 Explain how value chain analysis can be used to make a fir

1.    Explain how value chain analysis can be used to make a firm more competitive.

Solution

Value chain is a concept given by Michael Porter .

The Value Chain is a mathod of analyzing the different activities of a firm that allows to see how each activity contributes to give a competitive advantage. It even makes possible to estimate the costs generated by the different activities.The activities can divided into Primary activities and Support activities-

Primary activities

B) Support activities

It is with these activities that a firm may have the opportunity to generate value.

The firm\'s margin relies on its effectiveness in managing these activities. A competitive advantage would be obtained by reconfiguring the value chain so as to deliver a lower cost or a better differentiation on the market.

A differentiation advantage may come from any activity in the chain. It may be got by altering value chain activities to enhance uniqueness in the final commodity or by reconfiguring it .

Porter gave the following drivers for uniqueness: