Cost reduction is the root concept of "value chain analysis".

Question

Quizplus · Accepted Answer

While cost reduction is one of the principles in value chain analysis, it is not the root concept. The root concept is the idea of breaking down a company's activities into a series of value-generating processes, from product design to post-sale support, and identifying ways to improve efficiency and effectiveness at each step. The ultimate goal is to increase value for the customer while minimizing costs and maximizing profits for the company.

Cost Reduction Is the Root Concept of "Value Chain Analysis