Understanding the Dynamics of the Value Chain

Introduction

Michael Porter’s seminal 1985 book, Competitive Advantage, introduced the concept of the value chain as a tool for analyzing organizations.1 It was a breakthrough contribution to management thought because it stressed the importance of looking at the discrete activities a firm performs and how they interact to deliver value to the marketplace as a source of competitive advantage. Porter’s generic value chain is very clear and straightforward. It has made a significant contribution to our understanding of how organizations ought to work to create competitive advantage. It continues to be influential in the academic and business literature.

However, it was published in 1985 and has not been revised since then. What we propose ...