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Michael Porter Value Chain

A value chain is a chain of activities that a company operating in a particular market carries out in order to deliver a significant product and services for the marketplace. The idea originates from business management and was initial explained and made popular by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.


The principle behind Michael Porter’s value chain is that it provides competitive model. Developed by Porter as early as 1979, the value chains includes an analysis of Inbound Logistics, Operations, Outbound Coordination, Advertising and marketing and Sales. Secondary activities consist of Procurement, HR, IT and Facilities are also considered.


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