The Value
Chain is used as a criteria to identify the abilities of a company
from the disintegration of its activities. It views each step of the
process from the moment a product is invented to the time it reaches
the hands of the consumer, it includes all of the services (distribution,
post-sales service...).
To explain
the Value Chain, we need to look at Porter's analysis. Porter was
the person that proposed the Value Chain concept
(see the graph below).
Porter distinguishes between primary activities and support
activities. The primary activities that Porter refers to are those
related with the transformation of the inputs and the relationship
with the client. The support activities are more related to the company's
structure and its ability to develop the whole production process.
