Value Chain


Value chain is composed of primary and support activities that add value to the final product. The concept reviews the term and its main characteristics and examines success factors and implementation evidence.

Technique Overview

Value Chain Definition

The Value Chain is a management approach for analysing the activities of a firm and how it can gain competitive advantage (Porter, 1985). The value chain, comprising primary and support activities, includes the full range of activities required to bring a product or service from conception through to the different phases of production, delivery to the final consumer, and disposal after use (Kaplinsky and Morris, 2001).

Value Chain Description *

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Business Evidence

Strengths, weaknesses and examples of Value Chain *

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Business Application

Implementation, success factors and measures of Value Chain *

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Professional Tools

Value Chain videos and downloads *

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Further Reading

Value Chain web and print resources *

Value Chain references (4 of up to 20) *

  • Anderson, J. and Narus, J. (1995) Capturing the Value of Supplementary Services. Harvard Business Review, January-February, pp. 75-83.
  • Barney, J.B. (1991) Firm Resources and Sustained Competitive Advantage. Journal of Management, Vol. 17(1), pp. 99-120.
  • Besanko, D., Dranov, D. and Shanley, M. (2000) Economics of Strategy. John Wiley and Sons, New York.
  • Donelan, J.G. and Kaplan, E.A. (1988) Value Chain Analysis: A Strategic Approach to Cost Management. Journal of Cost Management, March/April, pp. 7-15.

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