Introduction to value chains. Types of processes. Simple definition of a value chain. The Economist explains: Value chain. The value chain was first developed as a business idea in the second chapter of “Competitive Advantage: Creating and Sustaining Superior Performance” by Michael Porter, first published in 1985.
In it he wrote: A systematic way of examining all the activities a firm performs and how they interact is necessary for analysing the sources of competitive advantage. In this chapter, I introduce the value chain as the basic tool for doing so. What is an MNE? What do we mean by value? Value chains diagram #1. Value chain example diagram. What is out-sourcing? What is value-chain integration? Examples of value chain integration. Off-shoring. Outsourcing.