Value chain analysis is the process of looking at the activities that go into changing the inputs for a product or service into an output that is valued by the customer. Companies conduct value-chain analysis by looking at every production step required to create a product and identifying ways to increase the efficiency of the chain.
Porter’s framework groups activities into primary and support categories.
The primary activities focus on taking the inputs, converting them into outputs, and delivering the output to the customer. The support activities play an auxiliary role in primary activities. When a company is efficient in combining these activities to provide a superior product or service, then the customer is willing to pay more for the product than the cost to make and deliver the product which results in a higher profit margin.
Following is the Value Chain Analysis of Asãbaab Designs:
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