The value chain refers to the separation of the company basic activities. Each activity represents a part of the total cost of the product.If the price that customers are willing to pay for the product exceeds the cost of activities, the company will generate a margin for such activityThe value chain is based on a value system that includes suppliers and customers value chains.The objective is to identify the sources of competitive advantage for the company. These sources can be in:- Core activities- The interrelationships between activities- The interrelationships within the value systemThe activities of the value chainThe basic activities of the company can be represented as shown in the following figure
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