Value Chain

Value Chain Concept

Value chain is a model developed by Michael E. porter and that represents a group of activities developed by a company and go from investigation and development to after-sales service. This model forms an essential instrument to analyze competitive advantages of the company and to help find ways to intensify those competitive advantages.

According to Michael E. Porter, the value chain is formed by primary activities (internal logistics, operations, external logistics, marketing and sales and after-sales service) and by support activities (inputs purchase, investigation and development for improvement of the product and/or productive process, human resources management and infrastructures of the company which is composed by the general management, finances and accountancy, planning, etc.

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