Understanding the Dynamics of the Value Chain

Value Chains

In Chapter 1, we introduced the Contemporary Value Chain model as the foundation for the overall business philosophy. However, in reality, there are a series of linked value chains supported by a number of business philosophies that comprise the extended value chain. Specifically, while a given enterprise is made up of all the Contemporary Value Chain model elements, it does not function in a vacuum. The common link between these individual value chains is the supply chain, and it is through enhanced supply chain management that extended value chains can be developed. Each echelon, or partner, in a supply chain is part of a network that provides the goods or services to the ultimate customer. Some supply chains are short and uncomplicated, ...