For identifying the ways to create value for customers, companies are using a tool, which is called the value chain. The concept of customer value can be explained by describing the value chain. The value chain involves the organisation’s infrastructure, human resource management, technology, procurement, inbound logistics, operations, outbound logistics, marketing and sales and services. Achieving optimisation of each element of the value chain is what organisations are aiming to. In analysing various elements, for example, inbound logistics (material handling, inspection, just-in-time delivery), operations (assembly, testing, processes, physical plant operations), outbound logistics (order processes, transport), marketing and sales (product development, pricing promotion, distribution) service (on-site and off-site, spare parts, customer care); organisations stand to gain insight not only into their own capabilities but also those of their competitors. Based on the analysis of the value chain organisations can prepare an effective marketing strategy for their goods and services (Sultan, 2003, lpp. 76).…
