Margin is an indicator for evaluating a company's profitability and financial performance . It defines the difference between the total value generated by the company and the total costs associated with carrying out the activities that generate that value.
In other words, margin represents the net profit that the company makes after deducting all costs related to the production, distribution and sale of its products or services. A healthy margin indicates that the company is generating more revenue than it is spending on its operations, suggesting efficiency and competitiveness in the market.
What are Porter's 5 forces and how their analysis helps us understand our position in the market
1.Identify primary activities
In this first step, what we will do is break down the azerbaijan number data activities necessary for the production and delivery of the company's product or service .
It is about identifying which specific actions directly contribute to creating value for the customer. This involves not only looking at the core activities, but also the supporting activities that make them possible.
2. Identify support activities
This step focuses on determining how supporting activities contribute to the success of the primary activities.
The aim is to understand how these functions , although not directly involved in the production or delivery of the final product, are essential to the success of the primary activities . This involves analysing how departments such as human resources, finance or accounting contribute indirectly to supporting and improving the main activities.