“Porter used a tool called the value chain to separate buyers, supplier and a firm into the discrete but interrelated activities from which value stems.” Comment on the statement

Michael Porter is a renowned economist and strategist known for his work on competitive advantage.

The statement refers to Porter’s concept of the “value chain,” which is a framework used to analyze a company’s activities and understand how they contribute to its competitive advantage.

The value chain consists of primary activities (like production and marketing) and support activities (like HR and technology), all of which collectively create value for the firm.

By dissecting these activities, a company can identify areas where it can improve efficiency and differentiation to gain a competitive edge.

This concept is widely used in business strategy and management to enhance a company’s performance.

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