Changing business inputs into outputs, so that they fetch more value than the cost of creating the outputs is of great importance to companies. Manufacturing companies acquire raw materials to produce something of utility. This is how manufacturing companies create value. Retailers arrange products in a way that is easier for customers to come by. In this article, we will discuss about Porter’s Value Chain that a company should implement in order to create value for its customers.
Origin of Porter’s Value Chain
Value Chain as a concept originated in 1985 when Michael Porter discussed it in his book "Competitive Advantage."
An Idea of Porter’s Value Chain
Value chain is a series of activities that a company functioning in a particular industry performs, so that it can deliver a valuable service or product for the market.
Thus, value chain helps in understanding how an organization builds value and searches for ways to add more value.