väärtusketi

Väärtuskett, meaning value chain in English, is a concept developed by Michael Porter that describes the full range of activities that firms, and industries, engage in to bring a product or service from conception to the end user. It is a framework used to analyze the specific activities through which a firm can create value and competitive advantage. The value chain is composed of primary activities and support activities.

Primary activities are those directly involved in the creation, sale, maintenance, and support of a product or service. These include inbound logistics, operations, outbound logistics, marketing and sales, and service. Inbound logistics pertains to receiving, warehousing, and inventory control. Operations transform inputs into the final product or service. Outbound logistics involve collecting, storing, and distributing the product or service to customers. Marketing and sales include activities to persuade buyers to purchase the product or service. Service encompasses activities to enhance or maintain the value of the product or service, such as repair and customer support.

Support activities are those that provide assistance to the primary activities and to each other. These include firm infrastructure, human resource management, technology development, and procurement. Firm infrastructure refers to activities like general management, planning, finance, and accounting. Human resource management deals with recruiting, hiring, training, and developing personnel. Technology development involves research and development, process automation, and product design. Procurement pertains to the purchasing of raw materials, supplies, and other inputs.

By understanding and optimizing its value chain, a firm can identify areas where costs can be reduced or differentiation can be increased, thereby achieving a competitive advantage. Analyzing each link in the chain helps identify where value is created and where improvements can be made.