Value chain

Value Chain Analysis
Lesson
Exercise
Answer
The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980).

Value chain analysis
Michael Porter in 1985 introduced in his book ‘ The competitive advantage’ the concept of the Value Chain.

Value Chain Value Pricing a pricing approach in which the selling price of a good or service is based on the company's assessment of the highest value of the product to the consumer; that is, on what the consumer is willing to pay for it.

Disintermediation: [disi] Disintermediation refers to the potential for members of traditional value chains (distribution channels) to become obsolete as the producer markets more directly with its consumers using the web.

Brief summary of current distribution network/value chain decisions:
Types of channels used
direct - e.g., direct via sales force, Internet, etc.
indirect - e.g., retailers, wholesalers, agents
combination ...

global web When different stages of value chain are dispersed to those locations around the globe where value added is maximized or where costs of value creation are minimized.

See also: Service, Customer, Marketing, Strategy, Market