Understanding the Dynamics of the Value Chain

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Chapter 2

The Value Chainâs Impact on Competitiveness and Profitability

Key Points

â¢Deciding on how to compete based on four key dimensions of competitivenessâcost, quality, response time, and flexibility

â¢Value chain design and how it is based on the chosen dimension(s) of competitiveness

â¢The value chainâfinancial performance link and the impact on economic value added and return on invested capital

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