Value

Porter’s Value Chain

If you want to increase your profits, Porter’s Value Chain can identify where your small business creates value.

In his book ‘Competitive Advantage’, Michael Porter proposed the Value Chain as a way of understanding that competitive advantage is not created by a business but by each of the distinct value adding activities that it performs in designing, producing, marketing, delivering and supporting a product.

The value chain is the sequence of activities that a business performs in order to create and deliver a valuable product.

The model considers each activity as having inputs, transformation processes and outputs. Resources are consumed by each activity as value […]