What is a value chain and how do you understand it?

It is to do something that can bring multiple benefits and profits in many ways and each other.

For example, the cattle industry can form a good value chain, the beef itself can make money, the cow dung can be used to ferment to produce biogas, the waste of the biogas can be used to raise earthworms, the earthworms can be used to raise yellow eels, the earthworm manure can be used to raise flowers and vegetables (high-grade flowers and vegetables), and the silt in the eel pond can be used to grow lotus root and callus white, the lotus root can be sold at a good price, and the leaves of the callus can be used to raise cattle. And so on and so on and so on and on Hehe.

The optimization of enterprises through information technology and key business processes is the key to achieving corporate strategy. Enterprises can enhance their competitiveness by flexibly applying information technology in the process of the value chain and giving full play to the enablement, leverage and multiplier effect of information technology.

1. The concept of value chain was first proposed by Michael Porter in 1985. Originally, Porter's value chain was primarily for vertically integrated companies, emphasizing the competitive advantage of individual firms.

2. With the development of international outsourcing business, Porter further proposed the concept of value system in 1998, extending the research perspective to different companies, which has certain commonalities with the concept of global value chain that emerged later.

3. Later, Kogut also proposed the concept of value chains, and his views reflect the relationship between the vertical separation of value chains and the reconfiguration of global space more than Porter's view. In 2001, Griffin proposed the concept of global value chains when analyzing the international division of labor and industrial linkages on a global scale.

4. The concept of global value chains provides a network-based analysis method for analyzing the geographical and organizational characteristics of international production, revealing the dynamic characteristics of global industries.

5. The basic value-added activities of the enterprise, that is, the "production and operation links" in the general sense, such as material development, finished product development, production and operation, finished product storage and transportation, marketing and after-sales service. These activities are directly related to the processing and circulation of commodity entities.

6. Auxiliary value-added activities of the enterprise, including organizational construction, personnel management, technology development and procurement management.

Technology and procurement here are both broadly defined, which can include both productive and non-productive development management, such as decision-making technology, information technology, and planning technology; Procurement management includes both the production of raw materials and the management of other resource inputs, such as hiring relevant consulting companies to carry out advertising planning, marketing, legal advice, information system design and long-term strategic planning for the enterprise.

7. The value chain is ubiquitous in economic activities, there is an industry value chain between upstream and downstream related enterprises, the connection of various business units within the enterprise constitutes the value chain of the enterprise, and there is also a value chain connection between the business units within the enterprise.

Each value activity along the value chain has an impact on how much value a business can ultimately achieve. The value chain plays a major role in revenue, the international division of labour and business strategy.

8. Porter's "value chain" theory reveals that the competition between enterprises is not only the competition of a certain link, but the competition of the entire value chain, and the comprehensive competitiveness of the entire value chain determines the competitiveness of enterprises.

In Porter's words: "The value in the consumer's mind is made up of a series of specific activities and profits within the company, both material and technical, and when you compete with other companies, it is actually a number of internal activities that are competing, not a single activity." ”

The value chain refers to the process of gradually increasing the value of products or services through a series of activities in the whole process from the procurement of raw materials to the delivery of final products or services.

1. The concept and role of the value chain

1. The value chain is a management model that organizes all aspects of the enterprise inside and outside to increase the value of products or services. It consists of a series of interrelated activities, including raw material procurement, manufacturing, sales and marketing, logistics and distribution.

2. Through the refined management and optimization of these links, enterprises can improve the quality of products or services, reduce costs, increase market competitiveness, and achieve higher profits.

Second, the main activities of the value chain

1. Raw material procurement is the starting point of the value chain, which involves finding the right supplier, negotiating and negotiating with the best businessman to ensure the quality, stability and stability of raw materials. By establishing a stable raw material chain, enterprises can reduce procurement costs and ensure the smooth progress of production.

2. Manufacturing is the process of transforming raw materials into final products or services. In the production and manufacturing process, enterprises need to carry out product design, production planning, production scheduling and other work. By optimizing production processes and improving production efficiency, companies can reduce production costs and improve product quality.

3. Sales marketing is the process of bringing a product or service to the market and achieving sales. It includes a series of activities such as market research, product pricing, channel selection, advertising, etc. Through accurate market positioning and effective sales strategies, companies can increase sales revenue and expand market share.

4. Logistics distribution is the process of transporting products from the production site to the hands of consumers. It involves warehouse management, order processing, transportation management and other links. By establishing an efficient logistics network and optimizing logistics operations, companies can achieve fast and accurate product distribution and improve customer satisfaction.

3. Additional activities and support activities

1. Additional activities include after-sales service, customer relationship management, brand image building, etc. High-quality after-sales service can increase customer satisfaction and enhance brand loyalty; Effective customer relationship management can help enterprises establish long-term and stable cooperative relationships; A good brand image can improve the market recognition of the product.

2. Support activities include internal administrative management, human resource management, technology research and development, etc. Good administrative management and human resource management can ensure the normal operation of the enterprise and the efficient work of employees; Technology research and development can provide innovative products and technical support to promote the continuous development of enterprises.

The value chain refers to the interrelationships between the various links and links in the activities of a business, and the degree to which these links contribute to the final product or service. Put simply, a value chain is the division of a company's main activities into a series of interrelated segments, each of which contributes different value to the creation and delivery of the final product or service. Through the management of the value chain of Helv, enterprises can better understand and optimize the efficiency of each link, improve the quality of products or services and customer satisfaction, so as to enhance the competitiveness and profitability of enterprises.

Value chain refers to the process by which a business or organization creates and captures value through a series of activities in the production or provision of a product or service. These activities range from raw material procurement, production, and sales to the delivery of the final product or service, as well as related support activities such as marketing, research, and human resource management.

The goal of the value chain is to enable companies to create higher value for their customers and gain a competitive advantage by effectively organizing and coordinating activities. Through value chain analysis, companies can identify their strengths and weaknesses in value creation and delivery, and take appropriate measures to improve efficiency, reduce costs, and improve quality, thereby improving competitiveness and profitability.

The concept of value chain was first proposed by Michael Porter in his book "Competitive Strategy" and is widely used in the field of corporate strategic planning and management. It emphasizes the interrelationship and coordination of activities within the enterprise and links the value creation capacity of the enterprise with the competitive advantage.