If a value chain's margin is negative, the company must reduce the cost of the value chain.

Question

Quizplus · Accepted Answer

If a value chain's margin is negative, it means the cost of producing and delivering the product or service is higher than the revenue generated. In order to stay profitable, the company must reduce the cost of the value chain, whether it be through cutting production costs, finding cheaper suppliers, or streamlining their distribution channels.

If a Value Chain's Margin Is Negative, the Company Must