Every business is made up of activities that either add or subtract value—but not all of them analyze how that value is created. Without a clear view of how processes work, companies can lose money, time, and opportunities.
That’s where a value chain becomes essential. By implementing it, you'll be able to identify what works, optimize processes, and highlight what makes your business unique. This way, you can maximize your company’s potential.
In this post, you'll discover what a value chain is, how to build one, its benefits, and we'll show you real examples.
It’s a theoretical model that allows you to visualize, analyze, and optimize the activities within a company. Through this strategy, you can examine the entire process involved in transforming inputs into products or services ready for the market.
Why is it important?
The business value chain is important because it offers a structured view of internal operations. This makes it a powerful tool for anyone who owns or plans to start a business—regardless of its size or sector.
While there are different models, the most well-known is Michael Porter’s. This American economist proposed dividing activities into primary and support categories.
The goal?
To identify how value is generated at each stage of the production process.
These are related to the creation, sale, and delivery of the product or service:
Inbound logistics. Refers to the activities that ensure the necessary materials or resources arrive at the right place and time within the company. From unloading inputs to preparing them for the production process.
Operations. This is where the transformation process takes place until the final products are ready for market.
Outbound logistics. Organizes how finished products are stored and distributed to the final customer.
Marketing and sales. Encompasses all actions needed to promote the product, persuade the customer, and close the sale.
After-sales service. These are activities aimed at maintaining and reinforcing perceived value after the purchase.
These ensure that primary activities are carried out efficiently, sustainably, and profitably:
Firm infrastructure. Includes management, planning, finance, and overall business direction.
Human resource management. Recruits, trains, and motivates personnel so that each role adds value.
Technology development and R&D. Improves processes, products, or services through innovation, technology, software, and management systems (like ERPs or CRMs).
Procurement. Acquires everything needed for operations: raw materials, equipment, services, technology, and infrastructure. It also includes negotiating with suppliers, quality assessment, and cost control.
When primary and support activities operate efficiently and are well-coordinated, you get an integrated chain. As a result, the value delivered to the customer is maximized, while operating costs are minimized.
Porter’s value chain aims to sustain business profitability in the long term. If you want to build one, follow these steps:
Start with the areas or processes you’re going to analyze and identify who’s involved:
Employees.
Suppliers.
Distribution channels.
Customers.
Example: if you run a digital products business, include everyone from the developer who creates the product to the platform that delivers it to the end user.
Classify all your business’s daily tasks according to Porter’s model:
Those that generate direct value (like production or sales).
Those that enable the process (like finance or technology).
Example: In an online store, product delivery is a primary activity; management software is a support activity.
Evaluate the level of efficiency to improve what works and eliminate what doesn’t.
Example: if your post-sales service is slow, it could be reducing value—even if it doesn’t generate high costs.
Tasks don’t happen in isolation. So, it’s important to analyze how they interconnect and how an improvement in one area can benefit another.
One way to do this is by creating a visual map of your value chain using graphics. These help represent each stage of the process with a clear view of the operational flow and its interconnections.
Design actions to optimize the process: automation, new tools, team training, outsourcing, etc.
The value chain is not a static model; it evolves with your business. So once improvements are applied, it's important to measure the results and identify new adjustment points.
You should also ensure that the business evolves in line with your life project. This will enable you to build a sustainable path that is aligned with your long-term vision.
The overall goal of the business value chain is to improve profitability. However, its positive effects are reflected at different levels.
The benefits include:
It helps detect bottlenecks and weak points in workflows. Thanks to this, it’s possible to adjust tasks, simplify stages, or redesign processes to gain operational agility.
Another major advantage of the value chain is that it strengthens internal collaboration and improves communication between areas.
If you work as a freelancer, it also helps you present clearer proposals aligned with the client’s real needs. Plus, applying this approach helps you build a more solid and strategic portfolio.
It also helps you identify repetitive or unnecessary activities that generate expenses. By reorganizing these processes, resource usage is minimized without compromising the quality of the final outcome.
By optimizing each link, you eliminate friction that may be slowing down production. As a result, the company can do more in less time.
All the above strengthens your relationship with customers. Moreover, when the experience aligns with the company’s values, it creates a more authentic and lasting connection.
Here is the full English translation, preserving the original format, brand tone, and without omitting or summarizing any paragraph:
Many successful companies have built value chains based on their strengths and brand propositions.
Here are 3 examples:
Its value chain stands out for:
Product design. Managed in-house with a strong emphasis on aesthetics and usability.
Outsourced production. Partners with manufacturers like Foxconn to scale efficiently without losing quality control.
Global logistics. Operates a global network of distribution centers to optimize delivery times.
Marketing. Invests in minimalist campaigns that convey aspiration and value.
Technical support. AppleCare and its customer support network strengthen the post-sale experience.
The Business Model Analyst offers a full analysis on Apple.
Its key areas include:
Logistics and distribution. Uses a network of proprietary distribution centers for fast and accurate deliveries.
In-house technology. Optimizes inventory and shipping through algorithms and intelligent processes.
Comprehensive platform. Features an intuitive interface, multiple payment methods, and efficient return management.
Customer service. Available 24/7 as a core part of its value proposition.
Has built a value chain focused on:
Premium ingredients. Selects high-quality products with sustainability criteria.
Store design. Spaces are designed to encourage comfort, longer stays, and recurring consumption.
Technological innovation. Enhances the user experience with mobile orders, apps, and loyalty programs.
Service culture. Staff is trained to create close, brand-consistent interactions.
These three global leaders organize their key activities to generate value, build customer loyalty, and maintain a competitive edge.
The value chain helps identify improvement opportunities and increase profitability. By understanding the connection between different operations and how they depend on one another, you can make smarter decisions.
If you run your own business, analyze each stage to spot weaknesses. Based on that, define improvements with a competitive approach that sets you apart in the market.
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The value chain analyzes how each activity creates customer value. A supply chain, on the other hand, focuses on the logistical flow of products—from suppliers to final delivery.
Porter’s model proposes five primary activities, but you can tailor them to your business. What matters is focusing on the functions that directly generate value for the customer.
If you’re achieving healthy margins, strong customer experience, and operational efficiency, your chain is likely working well. But you must evaluate whether each activity is adding real value without generating waste.
Os países têm fronteiras. Suas finanças, não mais.
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