A value chain analysis can be used for several purposes. What information can an organization learn from an analysis of its value chain and how could it use that information.

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Several pieces of information are gathered-the amount of value created by the activity, the resources consumed by the activity (particularly the financial costs), and interdependencies between the activity and other activities.

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The analysis looks for ways to modify activities to improve their value-generation capabilities, such as redesign the activity, expand its scope, reduce its scope, reposition it in the value chain, replace it with another activity, combine it with another activity, or eliminate it entirely.

A Value Chain Analysis Can Be Used for Several Purposes