Value creation chain
The value creation chain is the sum of all the value achieved in a given period in an enterprise. The value creation chain is the total path of a product/service from the supplier to the end customer, or the totality of primary and secondary processes in a company that contribute to value creation (according to Michael Porter).
Brief description
The concept of value creation chain (also: value chain) was mainly introduced by American management professor Michael Porter. His model depicts the activities and type of functions following value creation activities (e.g., Input logistics, operations, distribution logistics, etc.).
Previously, it was mandatory to optimize an enterprise's internal value creation chain (from procurement to disposal). In the meantime, it is moving to consider the enterprise across its borders and extend the value creation chain from raw material suppliers to the end customer.
Because of this, the competitive relationship between companies is changing - not individual companies but entire networks are competing. The company-against-company model of competitiveness is losing increasing importance.
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