Question

The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or _______________.

Answer 1

Answer:

Cost advantage or product differentiation

Explanation:

The two ways to create competitive advantage is by:

1. Cost advantage: when are firm's cost of production is lower that other competitors, they will be able to sell goods at lower prices and still make profit. Other firms in the industry with higher costs will not be able to compete with the low price, as bringing their own prices down will result in loss.

2. Product differentiation: is when the products offered by a company is different from others in the market in such a way that it attracts more customers.