Michael Porter introduced the concept of a value chain in his 1985 book Competitive Advantage. Porter describes a value chain as “disaggregating a company into its strategically relevant activities.” Given that it was introduced in a book on competitive advantage, it’s not surprising that he saw it as a powerful tool for focusing on potential sources of competitive advantage.

The value chain for any given business will be somewhat unique, reflecting the specific activities required to create value for customers, but the categories of value creating activities reflected here are a good starting point.

Tools for creating a Value Chain coming soon!