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.

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