This technical note explores the different models for capturing and explaining the flow of operations in a value chain: the McKinsey model, Michael Porter’s value chain, the value system and the services sector value chain. It presents the argument of how a value chain tool helps to perform an essential, systematic and rigorous analysis of a company’s activities to better understand the costs and potential sources of differentiation. Such analysis can help a company better understand how to enhance its competitive advantage.
This would be useful in a class devoted to operations, supply chain management or strategy.