A value chain is made up of the activities and processes used to create, develop and deliver a product or service. It encompasses the entire operations flow of a business, from the raw materials acquisition to the end customer’s delivery. Components of a value chain include activities such as production, research and development, marketing, transportation and customer support. When managed effectively, a value chain can bring long-term competitive advantage by creating sustained cost savings and higher customer satisfaction. To maximize value from the chain, businesses should focus on optimizing each individual component for sustainability and growth.
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