What Is a Value Chain?
A value chain is a combination of the systems a company or organization uses to make money. That is, a value chain is made up of various subsystems that are used to create products or services. This includes the process from start to finish.
Michael Porter’s Value Chain
Given the importance of the value chain, Michael Porter developed a strategic management tool for analyzing a company’s value chain. Porter, known for Porter’s five forces, laid out his method of analyzing value chains in his 1985 book Competitive Advantage. Porter sought to define a company’ …
