During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?
A)During the first step, when the value-chain activities are identified.
B)During the first step, when the cost driver(s) are identified.
C)During the second step, when the firm develops a competitive advantage by either reducing cost or adding value.
D)The entire purpose of value chain analysis is to determine if the company has a cost advantage; therefore, it occurs in all steps.
E)In the third step, when the company adopts and implements the balanced scorecard

Question

Quizplus · Accepted Answer

During the second step of value chain analysis, the firm develops a competitive advantage by either reducing cost or adding value. By examining each activity in the value chain, the company can determine which areas it can reduce cost relative to its competition, and thus determine whether or not it has a cost advantage.

During Which Step of Value Chain Analysis Will the Company