Understanding Value Chain: What Exactly is This?

Articles Oct 20, 2012


If you’re a business owner, understanding value chain is important. It might not be a term you’re familiar with; nevertheless, it’s time that you become acquainted with it.

What is Value Chain?

The term “value chain” first came into existence in 1985. Its creator, Michael Porter, wrote about it in his 1985 book, “Competitive Advantage: Creating and Sustaining Superior Performance.”

Value chain involves an assortment of activities that companies and its workers partake in in order to take a product or service from being an idea to becoming a full developed product or service. Afterwards it goes farther by reaching its target audience.

These assortments of activities normally include:

  • Design
  • Production
  • Marketing and selling
  • Outbound distribution

In regards to geographical location, value chain can be targeted on a local, national, or global base.

In other words, understanding value chain means understanding that companies must work together harmoniously to meet a market’s demands.

The Benefits of Understanding Value Chain

It’s beneficial to understand the entire process of doing business, especially since your business’ success depends upon it. So, with that in mind, here’s the benefit of understanding value chain:

  • Eliminating inadequacies within the business
  • Understanding the process of the product or service from start to finish
  • Being accepting to business transformations and experiences

So How Does Value Chain Tie into Long Tail Keywords?

Understanding value chain means you understand the importance of having a good SEO marketing campaign, which comes under the activity of marketing and selling. You realize that SEO is at its strongest point when you have long tail keywords that are appropriate for your content and the product or service it’s promoting.

Keep in mind, having a business website these days is a boost to any business. So, when you’re using the right keywords, particularly long tail keywords, to make your website findable, you’re taking your online marketing efforts in a successful direction.

As a whole, understanding value chain is just that – taking your business in a successful direction.

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