Value chain

The value chain is a business model that describes the full range of activities required to create a product or service. It begins with inbound logistics, where raw materials are sourced, and continues through operations, where these inputs are transformed into finished goods. The subsequent stages include outbound logistics, which involve distributing the products to customers, and marketing and sales, aimed at promoting the product. Finally, service activities ensure customer satisfaction and support. By analyzing each step in the value chain, businesses can identify areas for improvement, cost reduction, and competitive advantage. Understanding the value chain helps organizations optimize processes, enhance product quality, and ultimately deliver greater value to customers, thereby driving profitability and success in the marketplace.