You are on page 1of 6

What is the value chain?

According to Porter, the business of a firm can best be described as a value chain, in which total revenues minus total cost of all activities undertaken to develop and market a product or service yields value.

Value Chain Activities


Interlinked Effective and Efficient Linkages. Value Chain Analysis pinpoints these opportunities.

What is value chain analysis?


Used to identify sources of competitive advantage VCA aims:
To identify its own strengths & weaknesses Opportunities to secure cost advantages Opportunities to create product/service differentiation

You might also like