What Is a Value Chain?

A value chain is a business model that outlines the whole process of creating a product or service. The stages involved in taking a product from conception to distribution, as well as everything in between, such as sourcing raw materials, manufacturing functions, and marketing activities, are all part of the value chain for firms that manufacture things.
Value-chain analysis is carried out by examining the precise procedures involved in each phase of a company’s operations. Value-chain analysis is used to improve manufacturing efficiency so that a firm may offer the most value for the least amount of money.