How can Value Chain Analysis boost efficiency and increase profit margins?

The impactful causal factors in Value Chain Analysis are the various activities that add value to a product or service. These can be primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and service. Supporting activities like procurement, technology development, human resource management, and firm infrastructure also play a crucial role. Other factors can include the efficiency of these activities, the relationships between them, and external factors like market trends and economic conditions.

In Value Chain Analysis, each activity plays a crucial role in adding value to the product or service. Primary activities directly create value for customers. These include inbound logistics, operations, outbound logistics, marketing and sales, and service. Supporting activities, while not directly involved in production, improve the effectiveness or efficiency of primary activities and include procurement, technology development, human resource management, and firm infrastructure. Each activity is rated based on its impact on the overall value of the product or service, with the aim of identifying opportunities for savings and value improvement.