Browsing: Value Chain

A value chain is a business model that outlines the full range of activities involved in creating and delivering a product or service. It includes everything from sourcing raw materials and production to marketing, distribution, and after-sales support. Each step in the process adds value, helping businesses optimize efficiency and reduce costs while enhancing customer satisfaction. By analyzing the value chain, companies can identify areas for improvement, streamline operations, and gain a competitive advantage in the market.

The concept of the value chain was introduced by Michael Porter in 1985 as a framework for understanding how businesses generate value at different stages of production and service delivery. It consists of primary activities, such as inbound logistics, operations, outbound logistics, marketing, and service, as well as support activities like infrastructure, human resource management, technology development, and procurement. Businesses use value chain analysis to refine their strategies, improve profitability, and ensure sustainable growth.