Analysis Of Michael Porter s Value Chain Essay - 1740 Words

During 1985, Michael Porter, one of the most important American economists, introduced one of his most famous theories: â€Å"The Value Chain†. Through this model is possible to describe an organization like a set of processes. Precisely nine processes divided in five primary activities and four support activities that help the business to gain its competitive advantage. The primary activities are composed by â€Å"Inbound Logistics†, â€Å"Operations†, â€Å"Outbound Logistics†, â€Å"Marketing Sales† and â€Å"Service†, while the support activities are: â€Å"Firm Infrastructure†, â€Å"Human Resource Management†, â€Å"Technology Development† and â€Å"Procurement†. This theory was published for the first time in 1985 inside one of the Porter’s greatest work: â€Å"Competitive Advantage: Creating and Sustaining Superior Performance.† In fact, the Porter’s Value Chain is a good tool through which evaluate the organization’s ability in achieving the competitive advantage and if achieved, this tool is useful to measure the quantity of this advantage. A business should focus on one of the primary activities in order to create an advantage in that. Moreover, the value chain can be used also to evaluate and determine which strategy is the best for a company to gain the competitive advantage. Thus, the aim of this essay is to analyse the Porter’s theory of the Value Chain considering concrete examples, in order to observe different strategies, which a good business can use to gain a sustained economic advantage. 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