The value chain revisited

Abstract

The value chain concept was introduced by Michael Porter in 1985. It marked a breakthrough in management thinking about how to create and sustain competitive advantage. Unfortunately, it has not been revised to reflect changes in the business environment since its introduction almost a quarter century ago. We propose a contemporary value chain model that reflects the elements that Porter's model did not. Those elements include leadership, corporate culture and the discipline of supply chain management. The supply chain, an important component of the value chain but not synonymous with it, includes all the primary activities of the Porter model. Consolidating those activities into the supply chain component of the contemporary model provides an opportunity to include other elements that are fundamental to value chain success.