What does a value chain focus on in the context of an organization?

The value chain focuses on the overall product/service offers of an organization by analyzing and optimizing the series of activities involved in creating and delivering a product or service. This concept, introduced by Michael Porter, emphasizes how each step in the production process contributes to the value perceived by the customer. By understanding the value chain, an organization can identify areas where it can enhance its offerings, improve customer satisfaction, and gain competitive advantages.

For example, each activity, from inbound logistics to operations, marketing, and after-sales service, plays a role in shaping the final product or service. By focusing on the overall product/service offers, organizations can streamline processes, maximize efficiency, and ensure that every aspect of their operations aligns with their strategic goals. This holistic perspective is essential for driving value creation and delivering high-quality offerings to the market.