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How Do Value Chains Work?
From the beginning of a product's design until the time it reaches a customer's door, there are a number of sequential phases that make up its value chain. The value-adding steps of the production process, such as sourcing, manufacturing, and marketing, are all identified by the chain.
An organization evaluates the specific processes involved in each stage of its operation to do a value-chain analysis. In order for a business to produce the most value at the lowest cost, a value-chain analysis aims to increase production efficiency.
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