What is a value chain?

What is a value chain?
A value chain traces value added to a product (good or service) as the product evolves from raw materials to finished good and then passes through distribution channels to the end user.  Each transaction and every physical transformation along the process adds to the product’s value.  The value chain captures each value addition event in monetary terms throughout the full range of activities.  

Value chain example, simple fish processing:

How does an integrated value chain differ?
At Global Development Solutions, we don’t stop at the basic cost components; we drill down deep into the value chain.  Behind every arrow in the diagram is a full spreadsheet.  We not only uncover and categorize costs; we report everything that influences them.  Since monetary costs are not the only impediments to competitiveness, we integrate into the value chain model the affects of government policy, transit times, infrastructure and all other factors influencing competitiveness.  With the whole picture exposed, we present analysis and corresponding solutions based on realistic, timely data directly from the source.

From this information:
  • Development organizations determine where to focus assistance
  • Governments reform their laws to help improve their business environments
  • Investors evaluate entry risks
  • Companies make purchasing and sourcing decisions
  • Industry associations gain competitive insight and find ideal production partners