vertical linkage analysis

vertical linkage analysis
Gen Mgt
a tool that enables analysis of the value chain in order to determine where opportunities for enhancing competitive advantage may lie. Vertical linkage analysis extends the value chain beyond the organization to incorporate the suppliers and users who are at either end of the chain. This maximizes the number of locations where value can be created for customers. Vertical linkage analysis incorporates three steps: working out the value chain for the industry and costing value-creating activities; determining cost drivers for each of these activities; and evaluating opportunities for competitive advantage.

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