Check out in this article what a value chain is and what benefits this concept offers for the growth of your business.

Every company that wants to succeed in the market and stand out from the competition must, above all, deliver value to its customers. And for that, it is worth using the most diverse strategies and processes, such as the value chain.

After all, companies operate as an integrated system, and through the value chain it is possible to identify how each business is organized to offer relevant solutions and gain competitive advantages over competitors.

Focused on the target audience, the value chain allows managers to identify market opportunities to differentiate themselves from others and brings results that directly reflect on the company's profits and competitive advantage in its sector.

Want to know more about this subject? Keep following the content we prepared!

Understanding the value chain

Developed in 1985 by Michael Porter, the value chain can be defined as the set of activities performed by a company that add value to its customers.

This concept refers to the activities that the company carries out and the tools it uses to generate value for the public. Basically, the value chain allows the company to understand its functioning and the realization of its productive and strategic processes.

By organizing all the internal processes within the value chain, it is possible to identify the links (interconnection between the processes) and observe how each of them can generate value for the customer.

The strengthening of the links also allows the development of competitive advantages for the company, resulting in the growth of the business as a whole.

What are the benefits of the value chain?

Now that you understand more about the value chain, check out the main advantages of using this concept in your company's day to day:

• Improved decision making

  With the value chain, managers have more control over the company's processes, identifying which activities need to be restructured and which factors negatively affect the business.

  From this information, it is possible to delimit improvement strategies, working on the points that generate opportunities for the organization and values for customers.

  Decision making is also easier, since the value chain can act as a map to guide and assist managers in important decisions.

• Increased competitive advantage

  The value chain allows managers to observe opportunities in relation to what the company presents to the market and to the competition.

  In this way, the organization can explore the strengths and competitive advantages, getting ahead of the others and aiming at the leadership segment in which it operates.

• Possibility to promote improvements

  By applying the value chain in the company, it is possible to observe the activities in a broad and organized way, facilitating the identification of negative points or confusing processes that may be preventing the organization from offering the best solutions to its customers.

  From this view, managers can work to optimize "weak" processes, creating more value for the target audience.

• In addition to these benefits, the value chain still offers several other advantages for companies that implement this concept in their routine, such as:

  
  
  • Restructuring of processes that are not generating value;
  • Assistance in strategic planning;
  • Optimization of processes responsible for generating value;

Among others…

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Count on the Go On team to optimize your company's processes and generate more value for your customers!

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