Appendix 1: Porter's value chain
Competitiveness, big picture, alignment, coherence
Although for the purpose of the book, I'd rather stay away from theory, I'd like to refer to some pieces of it, since they provide a simple point of reference to illustrate my main topics here. Below diagram shows the value chain as developed by Michael Porter in the 1980's:
Says Porter: "The value chain disaggregates a firm into its strategically relevant activities in order to understand the behaviour of costs and potential sources of differentiation. A firm gains competitive advantage by performing these strategically important activities more cheaply or better ...