Editing Value chain (section)

{{Short description|Set of activities that a firm performs to deliver a valuable product}}
{{More citations needed|date=June 2023}}
{{Strategy}}
A '''value chain''' is a progression of activities that a business or firm performs in order to deliver [[goods and services]] of [[Value (economics)|value]] to an end [[customer]]. The concept comes from the field of [[business management]] and was first described  by [[Michael Porter]] in his 1985 best-seller, ''Competitive Advantage: Creating and Sustaining Superior Performance''.<ref name="Porter1996">{{cite book|author=Porter, Michael E.|location=New York.|url=https://books.google.com/books?id=H9ReAijCK8cC&q=competitive+Advantage%3A+Creating+and+Sustaining+Superior+Performance&pg=PR15|title=Competitive Advantage: Creating and Sustaining Superior Performance|year=1985|publisher=Simon and Schuster|access-date=9 September 2013|isbn=9781416595847|oclc=11210989|author-link=Michael Porter}}</ref>
{{blockquote|The idea of [Porter's Value Chain] is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with [[factors of production|inputs]], transformation processes and [[output (economics)|outputs]]. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.|[[Institute for Manufacturing]] (IfM)|Cambridge.<ref name="IfM">{{cite web|url=http://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/|title=Decision Support Tools: Porter's Value Chain|publisher=Institute for Manufacturing (IfM)|location=Cambridge University|access-date=9 September 2013|url-status=live|archive-url=https://web.archive.org/web/20131029203439/http://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/|archive-date=29 October 2013}}</ref>}}

According to the [[OECD]] Secretary-General {{harv|Gurría|2012}},<ref name="OECD5nov2012">{{cite conference|url=http://www.oecd.org/about/secretary-general/theemergenceofglobalvaluechainswhatdotheymeanforbusiness.htm|title=The Emergence of Global Value Chains: What Do They Mean for Business|author=Angel Gurría|conference=G20 Trade and Investment Promotion Summit|location=Mexico City|date=5 November 2012|publisher=OECD|access-date=7 September 2013}}</ref> the emergence of [[global value chain]]s (GVCs) in the late 1990s provided a catalyst for accelerated change in the landscape of international investment and trade, with major, far-reaching consequences on governments as well as enterprises {{harv|Gurría|2012}}.<ref name="OECD5nov2012" />