Value Chain

Value Chain

Value Chain is a concept that describes the full range of activities that businesses go through to bring a product or service from conception to delivery. It encompasses every step that adds value to the final product, starting with the processing of raw materials and ending with the delivered product or service in the hands of the end consumer. The value chain model was first introduced by Michael Porter in his 1985 book Competitive Advantage, and it has since become a fundamental tool for analyzing competitive advantage and finding ways to create and sustain superior performance. The primary activities in a value chain include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities, such as procurement, technology development, human resource management, and firm infrastructure, facilitate the efficiency and effectiveness of the primary activities. By examining each activity in the value chain, companies can identify areas where they can reduce costs, improve efficiency, or differentiate their products or services from competitors. The goal is to optimize the value chain to maximize customer value and achieve a competitive advantage in the marketplace.

Value creation, competitive advantage, process optimization, customer satisfaction, cost reduction, efficiency

— Robert Anderson

CITATION : "Robert Anderson. 'Value Chain.' Design+Encyclopedia. https://design-encyclopedia.com/define/value-chain?E=433824 (Accessed on October 14, 2026)"