Value Chain

AAA

DEFINITION of 'Value Chain'

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  2. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
  3. Supply Chain

    The network created amongst different companies producing, handling ...
  4. Logistics

    The overall management of the way resources are obtained, stored ...
  5. Bottleneck

    A point of congestion in a system that occurs when workloads ...
  6. Do It Right The First Time - DRIFT

    A theory from managerial accounting that relates to just-in-time ...
Related Articles
  1. Measuring Company Efficiency
    Fundamental Analysis

    Measuring Company Efficiency

  2. Find Investment Quality In The Income ...
    Options & Futures

    Find Investment Quality In The Income ...

  3. Working Capital Works
    Insurance

    Working Capital Works

  4. Top 6 Factors That Drive Investment ...
    Entrepreneurship

    Top 6 Factors That Drive Investment ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center