What is the value chain
Posted: Mon Jan 06, 2025 6:53 am
Content manager at Marketing4eCommerce
TEvery company has one common goal: to ensure that its customers are satisfied. To achieve this, attention must be paid to the value chain , an analytical tool that serves to optimize the creation of value by a company for its customers, identifying competitive advantages while minimizing costs .
Knowing how the value chain works in a company is essential because it provides a detailed understanding of all the activities involved in creating and delivering products or services . This allows you to identify opportunities for improvement, focus on creating customer value, develop competitive advantages, optimize the use of resources and carry out effective strategic planning, which together contribute to the long-term success and sustainability of the company in its market.
The value chain is a concept developed by Michael Porter in his book “Competitive Advantage: Creating and Sustaining Superior Performance”, published in 1985. For Porter, value could not be azerbaijan number data measured only in terms of a company's income, but had to be extracted from the study of the different stages of design, production and delivery of a product or service.
Analyzing a company's value chain allows it to identify areas where efficiency can be improved, production increased, and customer loyalty built . This can lead to a competitive advantage and increased profitability for the company.
Starbucks is an example of a value chain whose business strategy focuses on creating value through customer experience and product or service quality . In its primary activities, Starbucks stands out for its rigorous inbound logistics, ensuring the selection of the best coffee beans directly from producers around the world. In terms of marketing and sales, Starbucks invests in high-quality products and in providing exceptional customer service, prioritizing the creation of a unique experience for its customers.
What is a company's mission and how to define it
What are the links in the value chain?
As described by Porter, the value chain breaks down a company's activities into: primary and support . Likewise, after analyzing these links we can identify the margin , which represents the difference between the total value generated and the total costs incurred by the company in carrying out these activities.
TEvery company has one common goal: to ensure that its customers are satisfied. To achieve this, attention must be paid to the value chain , an analytical tool that serves to optimize the creation of value by a company for its customers, identifying competitive advantages while minimizing costs .
Knowing how the value chain works in a company is essential because it provides a detailed understanding of all the activities involved in creating and delivering products or services . This allows you to identify opportunities for improvement, focus on creating customer value, develop competitive advantages, optimize the use of resources and carry out effective strategic planning, which together contribute to the long-term success and sustainability of the company in its market.
The value chain is a concept developed by Michael Porter in his book “Competitive Advantage: Creating and Sustaining Superior Performance”, published in 1985. For Porter, value could not be azerbaijan number data measured only in terms of a company's income, but had to be extracted from the study of the different stages of design, production and delivery of a product or service.
Analyzing a company's value chain allows it to identify areas where efficiency can be improved, production increased, and customer loyalty built . This can lead to a competitive advantage and increased profitability for the company.
Starbucks is an example of a value chain whose business strategy focuses on creating value through customer experience and product or service quality . In its primary activities, Starbucks stands out for its rigorous inbound logistics, ensuring the selection of the best coffee beans directly from producers around the world. In terms of marketing and sales, Starbucks invests in high-quality products and in providing exceptional customer service, prioritizing the creation of a unique experience for its customers.
What is a company's mission and how to define it
What are the links in the value chain?
As described by Porter, the value chain breaks down a company's activities into: primary and support . Likewise, after analyzing these links we can identify the margin , which represents the difference between the total value generated and the total costs incurred by the company in carrying out these activities.