Value chain

The  full  range  of  activities,  resources  and  relationships  related  to  the undertaking’s  business  model  and  the  external  environment  in  which  it operates.

The value chain is a fundamental concept in business administration that describes the entirety of activities and processes that contribute to the creation of products or services. Systematized for the first time by Michael E. Porter in his work "Competitive Advantage" (1985), it represents the logical sequence of activities that lead to increased value for the end customer. The value chain is divided into primary and support activities. Primary activities include inbound logistics, production, outbound logistics, marketing & sales, and after-sales service. Support activities encompass areas such as firm infrastructure, human resource management, technology development, and procurement.

This analysis addresses both internal organizational processes and interorganizational relationships within supply chains, with the relationships to suppliers and customers being central aspects. Across industries, the value chain is used to increase efficiency, reduce costs, and promote innovation. An example from agriculture shows how key actors—from farmers to retail—are integrated into the value creation process to optimize the entire production and distribution structure.

The relevance of the value chain extends from strategic planning to practical implementation within a company, considering not only economic success but also social and ecological aspects. Through targeted analysis, companies can optimize their processes, maximize customer benefits, and secure long-term competitiveness.