Question

Define a value chain and the significance of the center of gravity. Provide an example of a company's center of gravity.

Answer 1

A value chain is process or rather set of processes or activities through which a company delivers added value to its products for the market.  for example proving after sales support for a product is a value added service. It adds value for the products and also provides competitive advantage in the market.

Every business has some specific tool/process/activities which defines its entire workflows, it  recognize and make necessary adjustments in way of doing things that will benefit most to the business. Such tools or process is centre of gravity for that company. To take leverage of best practices available in market for value added products and services having identifying centre of gravity of company is significant.

A software system adopted by company such as CRM or any business suit which can integrate almost each business process into it is an example of centre of gravity of a company.