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Global value chain

Global value chain refers to five interrelated activities, taking place in more than one country, that provide a company with opportunities to increase its competitive advantage by adding value to its products and services. Those activities are:

  • Inbound logistics (buying, shipping and storing the raw materials used to create the product)
  • Operations (using the raw materials to create the product)
  • Outbound logistics (moving the completed product from the factory to the customer)
  • Marketing and sales
  • Service

By taking a unique approach to any one of these areas, a company can maximize efficiency and differentiate itself in the marketplace. For example, more effective inbound logistics can keep costs down, while innovative marketing can help the company grow its customer base.

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