What does the industrial value-chain analysis determine?

Question

Quizplus · Accepted Answer

The industrial value-chain analysis determines a linked set of value-creating activities that are necessary to bring a product from conception to market and ultimately to the end-user. It analyzes how each activity adds value to the final product and how the activities are interdependent. Therefore, option C is the right choice. Option A is incorrect because the analysis considers not only the linkages within the firm but also the linkages with external entities in the value chain. Option B is incorrect because the analysis is compatible with both differentiation and cost leadership strategies. Option D is incorrect because a firm does not necessarily need to operate across the entire value chain; it can choose to focus on specific activities where it can create the most value.

What Does the Industrial Value-Chain Analysis Determine