{"id":25650,"date":"2026-03-03T22:25:56","date_gmt":"2026-03-03T20:25:56","guid":{"rendered":"https:\/\/pointofnew.at\/glossary\/value-chain\/"},"modified":"2026-03-06T15:43:26","modified_gmt":"2026-03-06T13:43:26","slug":"value-chain","status":"publish","type":"page","link":"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/","title":{"rendered":"Value Chain"},"content":{"rendered":"<div class=\"glossary-tldr\" style=\"background:#f0f1f3;padding:20px 24px;margin:24px 0;border-radius:12px;\">\n<strong>Key takeaways:<\/strong> Michael Porter&#8217;s Value Chain describes the sequence of all activities a company performs to create and deliver a product or service to its customers. Its analysis is a central tool for <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Innovation<\/a> and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-transformation\/\" style=\"color:#1a5276;text-decoration:none;\">Digital Transformation<\/a>.\n<\/div>\n<nav class=\"glossary-toc\" style=\"background:#f9f9f9;padding:20px 24px;margin:24px 0;border-radius:8px;border:1px solid #e2e2e2;\">\n<strong>Table of Contents<\/strong><\/p>\n<ol>\n<li><a href=\"#definition\">Definition: What is the value chain?<\/a><\/li>\n<li><a href=\"#elemente\">Primary and support activities<\/a><\/li>\n<li><a href=\"#analyse\">Conducting a value chain analysis<\/a><\/li>\n<li><a href=\"#digital\">Digital disruption of the value chain<\/a><\/li>\n<li><a href=\"#kmu\">Optimizing the value chain for SMEs<\/a><\/li>\n<li><a href=\"#faq\">Frequently Asked Questions<\/a><\/li>\n<\/ol>\n<\/nav>\n<h2 id=\"definition\">Definition: What is the value chain?<\/h2>\n<p>The value chain is a model developed by Michael Porter in 1985 that systematically represents the totality of all value-creating activities of a company. Each activity contributes to the creation of the final product and adds value\u2014or incurs costs. <\/p>\n<p>The concept is based on a simple idea: if you understand how value is created in your company, you can strategically build competitive advantages\u2014either through cost leadership (making activities more efficient) or differentiation (making activities better or different).<\/p>\n<p>In the context of modern <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">business model innovation<\/a>, the analysis extends beyond the company itself: examining the entire value chain of an industry reveals opportunities for <a href=\"https:\/\/pointofnew.at\/en\/glossary\/disruptive-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">disruption<\/a>, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-business-model\/\" style=\"color:#1a5276;text-decoration:none;\">platform models<\/a>, and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-business-models\/\" style=\"color:#1a5276;text-decoration:none;\">digital business models<\/a>.<\/p>\n<h2 id=\"elemente\">Primary and support activities<\/h2>\n<h3>Primary activities<\/h3>\n<p>Directly involved in creating and delivering the product:<\/p>\n<ul>\n<li><strong>Inbound logistics:<\/strong> Procurement, receiving, and warehousing of raw materials and intermediate products<\/li>\n<li><strong>Production\/Operations:<\/strong> Transformation of inputs into the final product or service<\/li>\n<li><strong>Outbound logistics:<\/strong> Storage, distribution, and delivery to the customer<\/li>\n<li><strong>Marketing &amp; Sales:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/go-to-market-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">Go-to-market<\/a>, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/pricing-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">pricing<\/a>, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/customer-journey\/\" style=\"color:#1a5276;text-decoration:none;\">customer journey<\/a>, and sales<\/li>\n<li><strong>Service:<\/strong> Customer service, maintenance, training, and after-sales support<\/li>\n<\/ul>\n<h3>Support activities<\/h3>\n<ul>\n<li><strong>Firm infrastructure:<\/strong> Management, planning, finance, legal<\/li>\n<li><strong>Human resource management:<\/strong> Recruiting, development, compensation<\/li>\n<li><strong>Technology development:<\/strong> R&amp;D, IT systems, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digitization\/\" style=\"color:#1a5276;text-decoration:none;\">digitalization<\/a><\/li>\n<li><strong>Procurement:<\/strong> Purchasing of resources, negotiation with suppliers<\/li>\n<\/ul>\n<h2 id=\"analyse\">Conducting a value chain analysis<\/h2>\n<ol>\n<li><strong>Identify activities:<\/strong> List all primary and support activities of your company<\/li>\n<li><strong>Allocate costs:<\/strong> Which activities incur which costs?<\/li>\n<li><strong>Identify value drivers:<\/strong> Which activities create the most customer value? Where is your <a href=\"https:\/\/pointofnew.at\/en\/glossary\/usp-unique-selling-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">USP<\/a>? <\/li>\n<li><strong>Find optimization potential:<\/strong> Where can you reduce costs without destroying value? Where can you increase value? <\/li>\n<li><strong>Analyze the industry chain:<\/strong> What does the entire value chain of your industry look like? Where can you skip or redefine stages? <\/li>\n<\/ol>\n<h2 id=\"digital\">Digital disruption of the value chain<\/h2>\n<p><a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-transformation\/\" style=\"color:#1a5276;text-decoration:none;\">Digital transformation<\/a> fundamentally changes value chains:<\/p>\n<ul>\n<li><strong>Disintermediation:<\/strong> Intermediaries become obsolete\u2014direct-to-consumer models bypass retail stages<\/li>\n<li><strong><a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-business-model\/\" style=\"color:#1a5276;text-decoration:none;\">Platformization<\/a>:<\/strong> Platforms orchestrate entire value chains without producing themselves (Airbnb, Uber)<\/li>\n<li><strong>Automation:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/ai-powered-business-models\/\" style=\"color:#1a5276;text-decoration:none;\">AI<\/a> and robotics automate individual chain links<\/li>\n<li><strong><a href=\"https:\/\/pointofnew.at\/en\/glossary\/servitization-as-a-service-models\/\" style=\"color:#1a5276;text-decoration:none;\">Servitization<\/a>:<\/strong> From product to service\u2014value creation shifts from production to ongoing operations<\/li>\n<li><strong>Data-based value creation:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/data-driven-business-models\/\" style=\"color:#1a5276;text-decoration:none;\">Data<\/a> becomes an independent value creation link<\/li>\n<\/ul>\n<h2 id=\"kmu\">Optimizing the value chain for SMEs<\/h2>\n<p>For <a href=\"https:\/\/pointofnew.at\/en\/glossary\/sme-digitization\/\" style=\"color:#1a5276;text-decoration:none;\">SMEs<\/a>, value chain analysis is particularly valuable:<\/p>\n<ul>\n<li><strong>Focus on core competencies:<\/strong> Identify the 2-3 activities in which you are truly better than the competition\u2014and invest there<\/li>\n<li><strong>Outsourcing potential:<\/strong> Non-differentiating activities can often be performed more efficiently by specialists<\/li>\n<li><strong>Digitalization levers:<\/strong> Which chain links benefit most from <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digitization\/\" style=\"color:#1a5276;text-decoration:none;\">digitalization<\/a>?<\/li>\n<li><strong>New revenue models:<\/strong> Can you unlock new <a href=\"https:\/\/pointofnew.at\/en\/glossary\/revenue-model\/\" style=\"color:#1a5276;text-decoration:none;\">revenue streams<\/a> by shifting positions in the chain?<\/li>\n<\/ul>\n<div class=\"glossary-cta\" style=\"background:linear-gradient(135deg,#1e3a5f,#2563eb);padding:32px;border-radius:12px;margin:32px 0;color:#fff;text-align:center;\">\n<h3 style=\"color:#fff;margin-top:0;\">Rethinking your value chain?<\/h3>\n<p style=\"color:#f0f0f0;font-size:1.05em;\">We analyze your value chain and identify potential for innovation and digitalization.<\/p>\n<p><a href=\"https:\/\/pointofnew.at\/en\/business-model-innovation-services\/\" style=\"display:inline-block;background:#fff;color:#667eea;padding:14px 32px;border-radius:8px;text-decoration:none;font-weight:600;margin-top:8px;transition:transform 0.2s;\">Discover Our Services \u2192<\/a>\n<\/div>\n<div class=\"glossary-faq-accordion\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\n<h2 id=\"faq\">Frequently Asked Questions (FAQ)<\/h2>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> What is a Value Chain, Simply Explained?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">The value chain shows all the steps a company goes through to create a product or service and deliver it to the customer\u2014from procurement through production and sales to customer service. Each step adds value and incurs costs. <\/p>\n<\/div>\n<\/details>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> Why is Value Chain Analysis important?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">It helps companies understand exactly where competitive advantages arise and where optimization potential exists. Through analysis, you can strategically reduce costs, strengthen differentiation, and identify innovation opportunities\u2014especially in the context of digital transformation. <\/p>\n<\/div>\n<\/details>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> How does digitalization change Value Chains?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">Digitalization enables disintermediation (elimination of intermediaries), platformization (orchestration instead of in-house production), automation (AI and robotics), servitization (from product to service), and data-based value creation. Entire industries are being redefined as a result. <\/p>\n<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">How can SMEs use Value Chain Analysis for competitive advantage?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">SMEs can identify specific activities where they can outperform larger competitors through specialization, speed, or customer intimacy. For example, by analyzing which value chain activities customers care most about, you might discover that faster delivery or customization matters more than price, allowing you to compete against bigger players. Many successful SMEs also find opportunities to eliminate or outsource low-value activities and double down on areas where they excel, creating a lean but powerful value chain.<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">Should I analyze competitors&#39; Value Chains or just my own?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">Analyzing both provides maximum strategic insight. Understanding competitors&#39; value chains reveals their cost structures, potential weaknesses, and areas where you can differentiate. For instance, if competitors rely on expensive physical retail while you can sell direct online, you&#39;ve identified a structural cost advantage. Many strategic innovations come from reorganizing the value chain differently than industry norms \u2013 IKEA&#39;s self-assembly model and Zara&#39;s ultra-fast fashion supply chain both emerged from reimagining traditional value chains.<\/div>\n<\/details>\n<\/div>\n<h2>Related Terms<\/h2>\n<div style=\"display:flex;flex-wrap:wrap;gap:0.5rem;margin-top:0.5rem;\">\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"\/glossar\/geschaeftsmodell-innovation\/\">Business Model Innovation<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\">Business Model Canvas<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-business-model\/\">Platform Business Model<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-transformation\/\">Digital Transformation<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/servitization-as-a-service-models\/\">Servitization<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/disruptive-innovation\/\">Disruptive Innovation<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/revenue-model\/\">Revenue Model<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/swot-analysis\/\">SWOT Analysis<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/industry-4-0\/\">Industry 4.0<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/value-proposition\/\">Value Proposition<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways: Michael Porter&#8217;s Value Chain describes the sequence of all activities a company performs to create and deliver a product or service to its customers. Its analysis is a&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24529,"parent":25140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-25650","page","type-page","status-publish","has-post-thumbnail","hentry"],"featured_image_src":"https:\/\/pointofnew.at\/wp-content\/uploads\/2025\/07\/Point-of-New-Business-Model-Innovation-Benedikt-Hasibeder-scaled.png","_links":{"self":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/comments?post=25650"}],"version-history":[{"count":10,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25650\/revisions"}],"predecessor-version":[{"id":28298,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25650\/revisions\/28298"}],"up":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media\/24529"}],"wp:attachment":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media?parent=25650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}