The value chain: the original breakthrough

Alludes to the concept of the value chain — which was seen as a powerful tool enabling strategists to diagnose and enhance competitive strategy (first put forward in Porter's 1980 book ‘Competitive Strategy’). Describes the value system as having at least three additional value chains of which account must be taken: supplier value chains; channel value chains; and buyer's value chains. Concludes a firm's co‐ordination might be improved ‘by relating its organizational structure to the value chain, and the linkages within it and with suppliers or channels’.