The Best of The Value Chain Models for Your Choices

Everyone likes to feel special and loved, not only in interpersonal relationships, but also in relationships with brands and companies. Offering special attention makes a big difference when consumers choose this or that product, this or that company. But, there is a name for this set of care and attention: value chain. Want to know more about this topic? So, read on.

The value chain concept

Value chain is the name given to a set of business activities that are related and that are developed in order to make customers satisfied and satisfied with the delivery of the product and with the good service offered. 

Everything involved with an organization’s activities is part of the value chain, for example, the relationship between the company and its respective suppliers. In order to make the value chain clear and comprehensible, it is important to know that this method uses a very efficient and vast approach. But, how does it work? Check the answer to this question in the next topic. 

How does the value chain work?

An organization develops several activities that generate value for its brand. Do not think that this is just something related to communication with the consumer. The value chain encompasses all processes and this ranges from the raw material used in production to delivery to the final consumer. 

The value chain is a diagram that was created by the American professor Michael Porter, with the objective of precisely evaluating the set of these activities, in order to improve the relationship between value and performance of processes. For Porter, each stage linked to the development, be it the product or the service – contributes to the enhancement of what is delivered to the consumer 

Elements that form a value chain

There are two types of activities that can compose the activities so that a value chain is formed: Primary Activities and Support Activities. Of the primary activities, it is important to know that every company has the activities listed below and that they facilitate the process of inserting the value chain “method”. Are they:

  • Internal or inbound logistics
  • External or outbound logistics
  • Operations
  • Marketing and sales
  • Service

As with primary activities, support activities are divided into several activities, all with different values, in addition to being destined for different areas and industries. However, these activities are separated into four categories:

  • Acquisition
  • Technology development
  • Human resources management
  • Organization infrastructure

Advantages of the value chain for companies

For companies, the value chain is an important competitive differential that adds market value to the product in question. You can Click here to continue reading on such models. Organizations that work with this type of parameter can differentiate themselves and achieve sales success In addition, thanks to the value chain, it is possible to identify the stages of production that need adjustments or that have contributed positively to the results achieved by the company.