Here Are the Different Types of Competitive Advantages of Value Chain Analysis
Value chain is basically the internal activities of a firm that are undertaken to convert inputs into outputs. The identification of primary and support activities that are responsible for adding value to a product and then analyzing it in order to either increase the differentiation or decrease cost of product is known as Value Chain Analysis.
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Types of competitive advantages
There are two different approaches to Value Chain Analysis. However in order to find out the ways of performing this analysis you have to first find out the type of competitive advantage that a particular company wants to form. The two types of Value Chain analysis are Cost Advantage and Differentiation Advantage.
This is the approach used by companies who want to compete with other companies in terms of cost and try finding out various sources that are helping them to get a cost advantage. It also tries to find out different ways that are responsible for driving cost.
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This approach is normally adapted by those companies who want to produce superior quality products or services as compared to their competitors.
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Steps that will help a company gain cost advantage
Steps that will help an organization gain differentiation advantage
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