A Value Chain is a set of activities that an organisation operating in a specific industry performs to produce and deliver a valuable product or service adding values through various processes to end users. The Value Chain includes activities such as design, production, marketing, distribution, and support to the final consumer.
The Value Chain model developed by Michael Porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various processes to create a finished product, and then sell that end product to customers in 1985, Competitive Advantage: Creating and Sustaining Superior Performance. The Global Value Chain Initiative is particularly interested in understanding value chains that are divided among multiple firms and spread across wide swaths of geographic space, hence the term Global Value Chain (GVC).
Related Definitions in the Project: The Project Management; Business Organisation
