Value Chain

Value Chain is a useful tool for analyzing a firm's strengths and weaknesses and understanding how they might translate into competitive advantage or disadvantage. The value chain describes the activities that comprise the economic performance and capabilities of the firm.

Definition

According to the Strategic Management by Parnell (4th edition),

Value Chain. A useful tool for analyzing a firm's strengths and weaknesses and understanding how they might translate into competitive advantage or disadvantage. The value chain describes the activities that comprise the economic performance and capabilities of the firm.