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Assessing the Primary Activities in the Value Chain Form

Assessing the Primary Activities in the Value Chain Form

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the value chain was introduced by michael s porter in 1985 in the book competitive advantage value chain is used to analyze the flow of value-adding activities from the raw materials supplier to the m customer the model looks at what value the company adds to each link and thereby uncovers the company's competitiveness the value chain consists of nine value activities that together create added value and thereby the company's margin margin in many places also called profit is actually the value chain's tenth field here there is no activity the field size is dependent on the previous nine fields the profit is equal to the difference between the value chain's total value which is the value of the product to the customer that is the price he is willing to pay for the product and the total cost of producing the product which is the total of the costs that are in the value chain's nine activities the nine activities are divided into two categories the

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