Value Chain

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What is a 'Value Chain'

Value chain is a high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers.

BREAKING DOWN 'Value Chain'

Value-chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost.

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RELATED FAQS
  1. What are some advantages and disadvantages of value chain analysis?

    Learn about the five activities that make up a generic value chain. Understand the advantages and disadvantages of value ... Read Answer >>
  2. What is the difference between supply chain management and value chain management ...

    Discover what the principal differences are between utilizing a supply chain management system and a value chain management ... Read Answer >>
  3. How can I use value chain analysis to evaluate investment decisions?

    Understand how an investor can use value chain analysis to evaluate an investment decision. Learn what activities add value ... Read Answer >>
  4. What are the primary activities of Michael Porter's value chain?

    Understand the primary activities of Michael Porter's value chain, and learn how a company can optimize those activities ... Read Answer >>
  5. What is the difference between a value chain and a supply chain?

    Understand the difference between a value chain and a supply chain. Learn why a company would want to maximize the value ... Read Answer >>
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