In Chapter 4, we discussed the internal value chain activities a firm can perform in its business model (see Exhibit 4.8). The value chain priori-ties can be quite different for firms taking different business strategies. Create examples of value chains for three firms: one using cost leadership, another using differentiation, and a third using value innovation business-level strategy. 4. The chapter notes there are key differences between economies of scale and learning effects. Let us put that into practice with a brief example.
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