The competitive strategy of an organization determines its value chain, which, in turn, determines its business processes.

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The competitive strategy of an organization determines the activities of its value chain, which, in turn, determines its business processes. The choice of competitive strategy determines how value is added by the organization and how it positions itself against competitors. The value chain consists of a series of activities that an organization undertakes to create and deliver a product or service to its customers. These activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The choice of competitive strategy will determine which of these activities the organization prioritizes and focuses on. This, in turn, will determine the specific business processes that are required to carry out these activities effectively and efficiently.

The Competitive Strategy of an Organization Determines Its Value Chain