Value chain analysis views a firm as a series of business processes that each adds value to the product or service.

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Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e., are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage. Thus, the firm is seen as a series of processes or activities that add value to the product or service.

Value Chain Analysis Views a Firm as a Series of Business