Value Chain Mapping Definition
A value chain is a series of activities that a company performs in order to create value for its customers. The term was first coined by Michael Porter in his 1985 book, Competitive Advantage: Creating and Sustaining Superior Performance.
Value chain mapping is the process of creating a visual representation of a company’s value chain. This can be useful for a number of reasons, including:
– Understanding where the company creates value
– Identifying areas where the company could create more value
– Benchmarking the company’s performance against competitors
There are a number of different ways to map a value chain, but all will typically include the same basic information, such as:
– A list of all the activities performed by the company
– The order in which these activities are performed
– An indication of which activities add value and which do not
Value chain mapping is a valuable tool for any business looking to improve its competitiveness. By understanding where it creates value, and where there are opportunities to create more value, companies can make strategic decisions that will help them to stay ahead of the competition.
