SOFTWARE ENGINEERING

Detailed explanation-1: -Analyzing the value chain allows organizations to identify the cost drivers for each activity and find ways to reduce them, lowering production costs and increasing profit margin. A differentiation strategy aims to create value by offering a unique or superior product to those offered by competitors.

Detailed explanation-2: -Michael Porter developed the value chain model by looking at the value creation process in terms of a value chain composed of the organizational activities a company performs to add value to its product. Porter identified these value chain activities and divided them into primary and secondary activities.

Detailed explanation-3: -Conducting a value chain analysis prompts you to consider how each step adds or subtracts value from your final product or service. This, in turn, can help you realize some form of competitive advantage, such as: Cost reduction, by making each activity in the value chain more efficient and, therefore, less expensive.