Entity: VALUE-CHAIN
A value chain is a series of stages involved in producing a product or service that is sold to consumers, encompassing all activities from raw material acquisition to end-of-life product treatment. It is a concept that combines aspects of both supply chain and operations management.
VALUE-CHAIN
Etymology
The term 'value chain' originated from the concept of analyzing business activities as a chain of value-adding processes.
Definition
A value chain is the series of stages involved in producing a product or service that is sold to consumers, encompassing all activities from raw material acquisition to end-of-life product treatment.
Historical Context
The concept of the value chain was popularized by Michael Porter in his book 'Competitive Advantage: Creating and Sustaining Superior Performance' in 1985. It has since become a fundamental framework in business strategy and operations management.
Cultural Significance
Value chain analysis is widely used by businesses to identify opportunities for cost reduction, differentiation, and competitive advantage. It helps organizations understand the activities that create value for customers and optimize their operations accordingly.
Related Concepts
- Supply Chain Management
- Operations Management
- Business Process Optimization
See Also
- Cambridge Institute for Sustainability Leadership (CISL) - Value Chain Definitions and Characteristics
- Cambridge English Dictionary - Value Chain Definition
- Investopedia - Understanding the Value Chain: Definition, Model, and Analysis
- HBS Online - What Is a Value Chain Analysis? 3 Steps
- Wikipedia - Value Chain
A value chain is the series of stages involved in producing a product or service that is sold to consumers, encompassing all activities from raw material acquisition to end-of-life product treatment.