Value chain

The value chain of a company is the most important chain of activities that constitute a Sustainable Competitive Advantage to generate profit. Activities should be included in the chain when:

• It displays different economics
  • For instance developing high value software which can be easily replicated
• Provides high differentiation potential
  • Examples are product and service quality.
• Present sizable costs

The consumption chain looks at the different milestones in consuming a product. Along the life cycle there will be many differentiation opportunities:

• Awareness of need
• Search
• Selection
• Order and purchase
• Delivery
• Payment
• Finance
• Receipt
• Installation, assembly
• Storage, transport
• Use
• Service
• Repair, Returns
• Final disposal

The internet has impact on all activities in the value chain, leading to a Virtual value chain