Value chain analysis assists businesses in understanding the various points in their value chain as well as the relationships between these various points. An internal value chain analysis assists a company in identifying factors that create or impede cost efficiency in its business model.
The 5C analysis, also known as the Value Chain analysis, is a strategic framework that aims to improve your understanding of the critical factors that drive value in your company and your product or service. It is a process that determines the value added by each link in the supply chain. This enables you to assess the value that each stage adds to the product and identify ways to improve it.
A company can identify factors that cause or impede its success by doing so.