{"id":8266,"date":"2026-05-29T10:10:16","date_gmt":"2026-05-29T01:10:16","guid":{"rendered":"https:\/\/mirai-works.co.jp\/consulnext\/?post_type=column&p=8266"},"modified":"2026-05-29T10:10:18","modified_gmt":"2026-05-29T01:10:18","slug":"what-is-a-value-chain-purpose-how-to-use-it-and-how-it-differs-from-a-supply-chain-explained-clearly","status":"publish","type":"column","link":"https:\/\/mirai-works.co.jp\/consulnext\/en\/column\/8266\/","title":{"rendered":"What Is a Value Chain? Purpose, How to Use It, and How It Differs from a Supply Chain \u2014 Explained Clearly"},"content":{"rendered":"\n

A value chain is a way of thinking that views a company’s business activities as a series of flows of value creation. This article briefly explains the basic meaning of a value chain, the purpose of analysis, and why it is important in business. It also explains the differences from supply chains, specific analysis procedures, and application examples by industry, providing hints for strengthening one’s own company’s competitiveness. Understanding this chain of value \u2014 the value chain \u2014 is indispensable for grasping the strengths and weaknesses of a business and formulating management strategy.<\/p>\n\n\n

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What Is a Value Chain? A Way of Thinking That Views a Company’s Business Activities as a Chain of Value<\/h2>\n\n\n\n
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The definition of a value chain is a management framework that views a company’s business activities as a series of flows up to when value is provided to customers.<\/p>\n\n\n\n

It was proposed by management scholar Michael Porter and published in his book “Competitive Advantage.”<\/p>\n\n\n\n

It analyzes how each activity generates added value \u2014 from the procurement of raw materials to when products and services reach customers.<\/p>\n\n\n\n

By visualizing this flow, it is possible to grasp where the strengths and weaknesses lie in the entire organization, and it helps in formulating strategies for building competitive advantage.<\/p>\n\n\n\n

Rather than viewing individual activities in isolation, it is important to envision the entire management activities of the organization as a chain of value creation.<\/p>\n\n\n

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The Decisive Difference Between a Value Chain and a Supply Chain Is the “Value Creation” Perspective<\/h2>\n\n\n\n
\"Business<\/figure>\n\n\n\n

Value chains and supply chains are easy to confuse, but their perspectives differ.<\/p>\n\n\n\n

While a supply chain places its main emphasis on managing and optimizing the “flow of goods” from raw material procurement to when products reach consumers, a value chain stands from the perspective of how “added value” is created in each process.<\/p>\n\n\n\n

Comparing the two, a supply chain is a concept primarily aimed at optimizing logistics and inventory management. A value chain, on the other hand, is a broader management strategy framework that also includes activities such as marketing and services and aims for value improvement of the entire business.<\/p>\n\n\n\n

A related term is the engineering chain, which refers to the flow of technical processes such as product planning, design, and development.<\/p>\n\n\n\n