BUS602: Marketing Management

A value chain is a business model that describes the full range of activities needed to create a product or service. For companies that produce goods, a value chain involves bringing a product from conception to distribution and everything in between, such as procuring raw materials, manufacturing functions, and marketing activities. Service companies also have value chains because the service delivered provides value to the customer.

The value chain of a firm relates to the supply chain. However, the word "value" changes the meaning to more than a supply chain. Often used in strategic management, the term value chain concerns how the firm creates value for the customer through its inbound supply chain, its outbound distribution channel, and the firm's operation and processes within the internal workings of the firm.

This video presentation concerns the analysis of a value chain of a New Zealand firm that exports high-quality beef to many countries. Note that an analysis of the targeted consumer and the producer is required, as this is a high-quality, differentiated product.