What is the value chain framework?

The Value Chain framework of Michael Porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage. Inbound Logistics. Includes receiving, storing, inventory control, transportation scheduling.

What are the types of value chain?

Types of Value Chain Governance

• Market. Market governance involves transactions that are relatively simple, information on product specifications is easily transmitted, and producers can make products with minimal input from buyers.
• Modular.
• Relational.
• Captive.
• Hierarchy.

What are the elements of the value chain?

COMPONENTS OF THE VALUE CHAIN STRATEGY. There are two main components of the value chain: primary activities and support activities. Within the two categories are additional processes that help to narrow down the specific areas within a company that adds value.

What is the concept of value chain?

Value Chains. The ‘Value Chain’ is a strategic management concept, originally introduced by Michael Porter back in the early 1980s. In its original form, it was used to provide a systemic way of examining all the activities a firm performs and their interaction; as the basis for identifying sources of competitive advantage. Today, as a concept,…

What is an example of a business value chain?

Starbucks as an example of the value chain model. The business management concept of the value chain was introduced and described by Michael Porter in his popular book Competitive Advantage: Creating and Sustaining Superior Performance in 1985.

What is the definition of value chain?

Updated Apr 19, 2019. The term value chain refers to the process in which businesses receive raw materials, add value to them through production, manufacturing, and other processes to create a finished product, and then sell the finished product to consumers.