The Value Chain – A Core Concept In Creating Competitive Advantage

The value chain developed by Michael Porter and introduced in his book Competitive Advantage is a core concept for understanding and developing competitive advantage within a business or a group.

I have to admit that the value chain can seem complicated but the insights can be very powerful, both for developing a strategy to create a differentiation or cost advantage and for implementing it.

Work in a business is done by activities organised into processes which cross functional lines. The value chain helps you to identify what needs to be changed and by whom if you’re going to consistently deliver your customer value promises.

The Consumer Value Chain

by Paul Simister on November 1, 2011

In the classic book, Competitive Advantage, strategy guru Michael Porter introduced the value chain in a stylised diagram based on a manufacturing business but many people overlook the idea of a consumer value chain. The Consumer Value Chain A business performs many different activities to create its own products or services which it intends to […]

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Using the concept of the industry value chain analysis is an important part of gaining an appreciation for the wider competitive factors that can impact on your business. Background To The Industry Value Chain Or Value System The idea of the value chain was introduced in the classic strategy book Competitive Advantage by Michael Porter […]

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Value Chain Video

by Paul Simister on September 2, 2011

I thought about putting together my own introduction to the value chain video and then I found these value chain videos from Professor Andrew Fearne which I thought were very well done. These focus on the industry value chain rather than the business value chain. Who Is Andrew Fearne? Andrew Fearne is Professor of Food […]

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Advantages & Disadvantages Of Value Chain Analysis

by Paul Simister on August 18, 2011

Value Chain Analysis is the big idea in Michael Porter’s classic strategy book Competitive Advantage. Image Rights for diagram The Advantages Of Value Chain Analysis A big advantage is that the value chain is a very flexible strategy tool for looking at your business, your competitors and the respective places in the industry’s value system. […]

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My thinking on strategy is heavily influenced by Michael Porter and his classic book Competitive Advantage introduced the concept of the value chain analysis. The value chain is an original Porter concept although he built on the idea of the business system from strategy consultants McKinsey and its main purpose is to help you to […]

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Competitive Advantage By Michael Porter

by Paul Simister on June 9, 2011

The follow up to the classic book Competitive Strategy by Michael Porter is the equally influential Competitive Advantage: Creating And Sustaining Superior Performance. I first read it in 1990 when I realised strategy was the subject that combined (and reconciled) my interest in finance and marketing. I’d be so impressed with Competitive Strategy and wanted […]

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