A2.4.3 Value Chain

 

Porter defines ‘value’ as “the amount buyers are willing to pay for what a firm provides”.

The generic value chain for a single company comprises three main elements:

  1. Its primary activities.
  2. Its support activities.
  3. The margin.

 

The value chain was therefore designed to display total value and consisted of the firm’s value activities and its margin.

 

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