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Business
Value Chain
The full range of activities a company performs to deliver a product or service from raw materials to the customer.
Michael Porter's Value Chain helps companies find competitive advantage by doing certain activities better or cheaper than rivals. Primary activities (operations, marketing) and support activities (HR, technology) are both examined.
It's the entire journey from farm to dinner table — every step adds (or loses) value.
Real world: Starbucks doesn't just sell coffee — it controls bean sourcing, roasting, store design, barista training, and loyalty apps. Analysing the value chain shows where it makes the most profit.
💡 The value chain shows exactly where your company creates (or loses) money.