Value Net vs. Value Chain

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Shabnam Nazelian
What is the difference between the "value net" and the "value chain"? (...) Read more? Sign up for free

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  Jaap de Jonge, Editor, Netherlands

Value Net and Value Chain

Hi Shabnam, look here for more info on the value chain, a well known model by Porter.


Value Net versus Value Chain

Value Net Model talks about cooperation and coopetition to maximize the market share (inspired by Porter's 5 forces)
Value chain is about analyzing and optimizing all activities and processes within a firm.

  Younis Jabarzadeh, Project Manager, Iran

Value Chain versus Value Net

Hi Shabnam, we can say that the Value Chain is part of a Value Net. A value chain is a sequence of functions operating in order to produce a value (product or service) for customers. Imagine a car making company from mines and steel factories, various parts manufacturers, assembly line, dealers and customers. This semi- series line can be called a value chain (compatible with the vertical pivot in the above chart. The main players or actors in a value chain are suppliers, company and customers. But in value net we may have other players like competitors who may be included in other value chains (different from ours).

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