Value chain analysis (VCA) is the process whereby a company determines the costs associated with organizational activities. The value chain analysis aims to identify where cost advantages or disadvantages exist anywhere along the value chain. The VCA process can enable a company to better identify its own strengths and weaknesses, especially as compared to a competitors’ value chain analyses and their own data examined over time. The initial step in implementing VCA is to divide a firm’s operations into specific activities or business processes. Then the analyst attempts to attach a cost to each discrete activity; the costs could be in terms of both time and money. Finally, the analyst converts the cost data into information by looking for competitive cost strengths and weaknesses that may yield competitive advantage or disadvantage. It is important to note that value chains differ vastly across industries and companies.