The value chain consists of the organizations,systems and processes that add to customer value in moving products to ends users.
Value chain is the group of vertically aligned organizations that add value to a good or service in moving from basic suppliers to finished products for consumers and organizational end users.
A value delivery network is made up of the company,suppliers,distributors and ultimately customers who partner with each other to improve the performance of the entire system.
The value chain is the configuration of distribution channels linking value chain members with end users.We examine the decisions faced by a company in developing a channel of distribution strategy.Channels of distribution are a central issue in managing the value chain. An effective and efficient distribution channel provides the member organizations with an important strategic edge over competitors.
We look at the role of the value chain in marketing strategy and discuss several channel strategy issues.Next,we examine the process of selecting the type of channel,determining the intensity of distribution and choosing the channel configuration of organizations.A discussion of managing of managing the distribution channel follows.
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