Porter's Value Chain: Basics

In this learning nugget regarding Porter’s Value Chain concept, we introduce Michael Porter, a renowned strategist and economist. We discuss the basic economic principles underlying the concept, emphasizing the creation of value for customers and the pursuit of competitive advantage. We explain Porter’s Value Chain as a framework for analyzing activities that contribute to value creation, describing both primary and secondary activities. The Value Chain helps organizations identify opportunities for improvement and gain a competitive edge in the market, this being its ultimate purpose.