are just a few of the problems that marketers face in this factor.

More and
more consumers are demanding that the products they buy sourced ethically, and if
possible, from sustainable sources.

2.1.4 Internal Analysis

• Value Chain Analysis
Value chain analysis describes the internal activities a frim engages in when
transforming inputs into outputs. Each activity the firms performs along the horizontal
chain adds incremental value – raw materials and other inputs are transformed into
components that are assembled into finished products or services for the end consumer
(Rothaermel, 2017). Referring to the book there are two main internal activities of a
firm it can be divided into primary and supporting activities. Primary activities are
activities that add value directly by transofrming input into output, whereas the firm
moves a product or service horizontally along the internal value chain. Besides, the
supporting activities are activitities which not directly add value to the input.

Figure 1 Value Chain Analysis Framework

(Source: Rothaermel, 2017)

Figure 10 above show the flow of how primary activities was supported by the
supporting activities to obtain and gain margin. Therefore, the main purpoes of this
analysis is to identify which activities in the process of transforming inputs into outputs
generate differentiation and which one is drive costs (Rothaermel, 2017)