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A value chain is a business concept that describes the full range of activities needed to create a product or service. It begins with the initial conception of a product and ends with the delivery of that product to the final consumer. Each step in the value chain adds value to the product or service. The concept was first introduced by Michael Porter in his 1985 book, Competitive Advantage: Creating and Sustaining Superior Performance.
The value chain is typically divided into primary activities and support activities. Primary activities are those
By analyzing its value chain, a company can identify areas where it can improve efficiency, reduce costs,