If a value chain's margin is negative, either the value must be increased, or the costs of the value chain need to be reduced.

Question

Quizplus · Accepted Answer

If the margin of a value chain is negative, it means that the costs of the value chain are higher than the revenue generated by it. To improve this situation, either the value of the product or service must be increased, or the costs of producing it need to be reduced. This can be achieved through various methods such as improving efficiency, eliminating waste, sourcing cheaper materials, or negotiating better deals with suppliers. Ultimately, the goal is to increase the margin of the value chain to ensure profitability.

If a Value Chain's Margin Is Negative, Either the Value