Michael Porter's Value Chain

Unlock your company's competitive advantage

Xavier Robben

Publisher: 50minutes.com, 2016, 28 pages

ISBN: 978-28-0627-06-

Keywords: Strategy

Last modified: June 9, 2018, 9:09 a.m.

According to Porter's concept of the value chain, all companies must study the concept of value creation before they begin to develop a competitive advantage. This chain facilitates the matter by breaking down the different functions of a company and examining the costs. It therefore allows companies to effectively distribute resources and therefore efficiently position products on the market.

In this book, you will discover how Michael Porter's Value Chain can help you, learn how to reduce your costs, and use this knowledge to increase productivity and achieve sustainable growth. A clear explanation of the benefits and potential drawbacks of the method, a discussion of a practical case study, and an introduction to related models will give you the tools you need to tailor your approach to your situation.

  • Introduction to Michael Porter's Value Chain
  • Theory
    • Value creation
    • Components
    • An adaptable model
  • Limitations and extensions of Michael Porter's Value Chain
    • Limitations and criticisms
    • Related models and extensions
  • Practical application of Michael Porter's Value Chain
    • Advice and top tips
    • Case study — industrial company
  • Summary


Michael Porter's Value Chain

Reviewed by Roland Buresund

OK ***** (5 out of 10)

Last modified: July 8, 2019, 5:08 p.m.

A short guide to Michael Porter's extensive Value Chain concept, with some guidance of its shortcomings.

Unfortunately, it just addresses a few of these and bypasses the limited viability of it in service industries. Also, it only recommends that you look into Porter's other major model, the Five Forces (nothing wrong with that, but extremely limited in this context). 

With all that said, it is an OK guide to the subject matter. 


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