Value chain
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The value chain of a company is the most important chain of activities that constitute a Sustainable Competitive Advantage to generate profit. Activities should be included in the chain when:
- It displays different economics
- For instance developing high value software which can be easily replicated
- Provides high differentiation potential
- Examples are product and service quality.
- Present sizable costs
The consumption chain looks at the different milestones in consuming a product. Along the life cycle there will be many differentiation opportunities:
- Awareness of need
- Search
- Selection
- Order and purchase
- Delivery
- Payment
- Finance
- Receipt
- Installation, assembly
- Storage, transport
- Use
- Service
- Repair, Returns
- Final disposal
The internet has impact on all activities in the value chain, leading to a Virtual value chain
