Value chain

(1) Total bundle of benefits offered to consumers through a channel of distribution. (2) The collective activities that occur as a product moves from raw aterials through production to final distribution. (3) The concept of value chain has been proposed by Michael Porter as a tool for identifying ways to create customer value. According to him every firm is a synthesis of activities that are performed to design, produce, market, deliver, and support its product. The value chain identifies nine strategically relevant activities that create value and cost in a specific business. These nine value-creating activities consist of five primary activities and four support activities.