The primary purpose of value chain analysis is to:
A) segregate the company's operations into different types of functions.
B) facilitate a comparison activity-by-activity of how effectively and efficiently a company delivers value to its customers,relative to its competitors.
C) eliminate unproductive and obsolete functionality in the firm's operating strategy.
D) compare cost structure efficiency with the operating effectiveness of rivals to determine the strategy content of rival firms.
E) All of these.

Question

Quizplus · Accepted Answer

The primary purpose of value chain analysis is to facilitate a comparison activity-by-activity of how effectively and efficiently a company delivers value to its customers, relative to its competitors. Value chain analysis involves breaking down the company's operations into primary and support activities, and then analyzing each activity to identify opportunities for cost savings, process improvements, and differentiation from competitors. While value chain analysis may lead to the elimination of unproductive functionality, this is not its primary purpose. Similarly, comparing cost structure efficiency with operating effectiveness of rivals is a possible outcome of value chain analysis but is not the primary purpose.

The Primary Purpose of Value Chain Analysis Is To