A value chain is a series of consecutive steps, which goes into the creation of a finished product. This chain identifies each step in a process where the value is added. Including manufacturing, and marketing stages of production. The purpose of a value chain analysis is to increase product efficiency so that a company can deliver maximum value for the least possible cost. A value chain is a step by step business model for transforming a product or a service from idea to reality. The end goal of a value chain is to create a competitive advantage for a company by an increasing productivity level while at the same time keeping costs reasonable. Competition is an ever increasing situation and companies must continually examine the value that is going to be created. The role with supporting activities is also to help with the primary activities. There are various steps included taken into consideration within this model, which needs to be taken into account. The value chain does also take into consideration the concept of competitive advantage, in this case, strategy does also have a functional role in the value chain. When describing this value chain, taken into consideration, there is the question of activity and performance.
Competition is a part of the value chain, and the concept of competitive advantage, there is also the question of productivity level.
The concept of a value chain is a step by step process which also has to be taken into consideration when making a more thorough analysis.