What is a Value Chain? Definition and meaning

Value Chain

Definition: a Value Chain is a chain of activities that a firm operating in an industry performs in order to deliver a valuable product or service for the market. It is a business strategy approach by Michael Porter (1985) to analyze specific activities or business processes through which firms can create value and competitive advantage.
VC Analysis distinguishes between primary processes or activities and support processes or activities.
A firm may achieve a cost advantage:
- by reducing the cost of individual (primary or secundary) VC activities
- by reconfiguring the VC.

💡

Learn more about Value Chains.

More on process management: Business Process, Business Process Reengineering, Capability Maturity Model Integration, DMADV, DMAIC, more on process management...

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

Add MBA Brief to your desktop / iPad