Costs and price differences among competing companies can have origins in activities performed by the company's internally performed activities (its own value chain), but also on costs in the value chain of its suppliers and distribution channel allies.
Value chain is a process in which a company analyzes and examine its activities to find the competitive advantage to add value to its products and services.
Hence, costs and price differences among competing companies can have origins in activities performed by the company's internally performed activities (its own value chain), but also on costs in the value chain of its suppliers and distribution channel allies.
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