The value chain model:

Question

BlackTom AI · Accepted Answer

The question concerns the value chain model. In this context, the value chain analysis is a framework that helps a firm identify where value is added in its activities and where information technology can enhance performance.

Since the answer options are not provided, we cannot compare multiple statements or identify which alternatives might be true or false. Instead, we can evaluate the single listed claim: "helps a firm identify points at which information technology can most effectively enhance its competitive position."

This statement aligns with the core purpose of value chain analysis. By breaking down a company's activities into primary and support activities, managers can pinpoint stages where IT investments or improvements (such as data analytics, ERP systems, supply chain software, or customer relationship management) can yield the greatest gains in efficiency, differentiation, or responsiveness. In other words, IT can amplify value creation at specific linkages (inbound logistics, operations, outbound logistics, marketing and sales, service) or in support activities (firm infrastructure, human resource management, technology development, procurement), which in turn can strengthen competitive position.

Without alternative options to critique, we focus on this interpretation: the value chain model is a diagnostic tool to locate leverage points for IT to improve competitive advantage, rather than a prescriptive rule that IT should be applied uniformly across all activities.

If a student were presented with other statements, they would need to assess whether those statements correctly reflect the purpose of value chain analysis—for example, whether it only considers internal processes, whether it neglects external partners, or whether it assumes IT always leads to competitive advantage without regard to cost or implementation challenges. Such contrasts would help distinguish accurate from inaccurate understandings of the model.

MIDS 301 For Feb 4th Class

The value chain model:

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