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Business Foundationsadvanced

Value Chain

Definition

The full set of activities a business performs to create value for customers, from sourcing raw materials through to post-sale support.

Why it matters

Mapping your value chain reveals where you add the most unique value (your core strength) and where you can eliminate inefficiency or cost.

Example

A food brand's value chain includes: supplier relationships → recipe development → manufacturing → packaging → distribution → customer experience. She discovers her real edge is recipe development.

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