Understanding the Dynamics of the Value Chain

Conclusion

The Contemporary Value Chain model is designed to capture important elements of a firm’s value chain that the Porter model does not. The Contemporary model builds on the important contribution of the basic idea of the value chain that Porter created 27 years ago.

The Contemporary model argues that the effective functioning of the value chain depends fundamentally on the quality of a firm’s leadership, corporate culture, the quality of its people, and the congruence between the firm’s strategy and its infrastructure.

The primary activities of the Porter model are consolidated into the supply chain component of the Contemporary model allowing the ­Contemporary model to include important elements not included in the Porter model, ...