What is the main goal of value chain analysis?

The main goal of value chain analysis is to identify value-adding activities within an organization. This process involves examining every step of the production and service experience to understand how value is created for customers. By identifying these value-adding activities, organizations can better understand their competitive advantages and how they can enhance product quality or customer satisfaction. The value chain provides a framework for organizations to evaluate which activities contribute most effectively to their overall strategic goals.

Focusing on the activities that add value allows businesses to optimize their operations, align resources efficiently, and potentially drive down costs by eliminating or improving non-value-adding activities. This targeted approach can lead to creating a more streamlined and effective production process, ultimately enhancing profitability and market position.