Definition of Value chain:
Interlinked value-adding activities that convert inputs into outputs which, in turn, add to the bottom line and help create competitive advantage. A value chain typically consists of (1) inbound distribution or logistics, (2) manufacturing operations, (3) outbound distribution or logistics, (4) marketing and selling, and (5) after-sales service. These activities are supported by (6) purchasing or procurement, (7) research and development, (8) human resource development, (9) and corporate infrastructure.
A company conducts a value-chain analysis by evaluating the detailed procedures involved in each step of its business. The purpose of a value-chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost.
A value chain is a business model that describes the full range of activities needed to create a product or service. For companies that produce goods, a value chain comprises the steps that involve bringing a product from conception to distribution, and everything in between—such as procuring raw materials, manufacturing functions, and marketing activities.
The process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.
How to use Value chain in a sentence?
- Sometimes as a product progresses and times change it will end up going up the value chain making it worth more and more.
- Value chains help increase a business's efficiency so the business can deliver the most value for the least possible cost.
- A value chain is a step-by-step business model for transforming a product or service from idea to reality.
- The value-chain theory analyzes a firm's five primary activities and four support activities.
- There was a highly sought managerial candidate that could keep the vital but failing value chain going for the company whose bottom line was beginning to suffer, thereby keeping overhead in check.
- The end goal of a value chain is to create a competitive advantage for a company by increasing productivity while keeping costs reasonable.
- Meanwhile, Thailand will continue to struggle with an education system inadequate for moving up the value chain.
- Knowing the value chain will help you set the correct price for your companies products or services to get the most profit.
Meaning of Value chain & Value chain Definition